In 2021, BetMGM took less than $100 worth of bets on New Jersey college basketball games. As a result, it will pay a $25,000 fine.
State law bans betting on New Jersey college teams, and on any college games played in-state, even if they feature teams from other states. Other states also ban bets on in-state college teams, including New York, South Dakota, Virginia and Washington, according to the Associated Press.
New Jersey voters could have changed this law at the polls last November, but overwhelmingly defeated a referendum that would have allowed such bets. New Jersey regulators imposed the fine over bets placed on a tournament game and on a Rutgers University game.
The state Division of Gaming Enforcement said BetMGM accepted two bets on March 10, 2021 on a Metro Atlantic Athletic Conference tournament game between Niagara University and Marist College that was to be played in Atlantic City the next day.
BetMGM blamed its technology partner, Entain PLC, for accepting the bets.
A member of the sportsbook trading team noticed the error 40 minutes after the bets were offered, voided them and returned the money to the patrons who placed them, the AP reported. But 10 days later, the BetMGM and Borgata websites offered a pre-made parlay involving a Rutgers basketball game. It was available for eight hours before BetMGM noticed the error and took it down; only two people took the bet, for a total of $30.
The enforcement division said an Entain employee working in Australia created the parlay, but failed to recognize Rutgers as a New Jersey team and thus ineligible for betting.
