BetMGM Discontinues Credit Card Acceptance, Blocks New Applications

(AsiaGameHub) –   BetMGM has formally discontinued the use of credit cards for its sportsbook and online casino services. The operator confirmed that, effective Tuesday, March 31, it is blocking all new credit card registrations.

BetMGM Ends New Credit Card Use – Begins Phasing Existing Ones Out

Users who have previously deposited bonuses or funds using their current credit cards will be permitted to use those balances before their cards are also deactivated.

This process will be gradual, but BetMGM has taken a firm stance, aligning with a broader industry movement where other gambling giants are also abandoning this payment method due to consumer protection concerns.

However, the move to halt credit card use is driven by a more extensive business logic. BetMGM was recently penalized $100,000 in Pennsylvania after the state’s gaming board found that thousands of accounts were fraudulently opened using stolen identities.

Eliminating credit card payments will assist BetMGM in addressing comparable fraud incidents going forward. Restricting this deposit option would directly enhance consumer safety and also complicate efforts for bad actors to exploit stolen information.

Deeper Business Rationale as Credit Cards Ban Is Good for Companies

From a financial perspective, firms also have minimal incentive to avoid this course of action. Per Citizens JMP Securities analyst Jordan Bender, DraftKings, which ceased taking credit card payments in September, has seen no major negative fallout.

The industry consensus is that prohibiting credit cards does not materially affect company profitability.

FanDuel and DraftKings already function in several jurisdictions that prohibit credit cards for funding gambling accounts, including Massachusetts, New Hampshire, Oregon, Rhode Island, and others.

While a credit card ban offers public relations benefits, it primarily fulfills a more significant regulatory and financial objective for gambling operators.