BetMGM Hit with $50,000 Penalty Over Illegal College Prop Bets in Colorado

Colorado’s gaming authorities have issued a $50,000 fine against BetMGM after determining that the sportsbook violated state regulations by accepting wagers on individual student-athlete performance, a betting category explicitly banned under Colorado law.

The New Jersey-based operator notified regulators of the issue itself, revealing 48 prohibited bets placed on NCAA basketball and football events between March 2023 and October 2024.

The unlawful wagers involved two men’s National Invitation Tournament matchups, two women’s March Madness regional finals, and a UNLV vs. Oregon State football game.

Regulators noted that most of the bets occurred during the 2024 women’s NCAA basketball tournament and featured high-profile players such as Caitlin Clark, Angel Reese, and Paige Bueckers.

Colorado’s legislation allows betting on college teams and overall game results, but it strictly forbids wagers tied to individual player statistics or performance metrics. Under the terms of the penalty, BetMGM must pay $25,000 within ten days, while the remaining $25,000 will be suspended for two years, provided that the company avoids further violations during that period.

The sportsbook has pledged to enhance employee training and demonstrate improved compliance with state rules.

This enforcement action comes shortly after DraftKings was fined $40,000 in July for accepting similar illegal bets on college athletes, underscoring Colorado’s stringent oversight approach. Regulators have repeatedly highlighted their commitment to protecting student-athletes from “undue pressure, harassment, and risks associated with betting markets.”

Despite the fine, BetMGM continues to report strong financial results. The operator announced third-quarter 2025 revenue of $667 million, a 23 per cent increase year-on-year, and expects to achieve at least $2.75 billion in total revenue along with $200 million in EBITDA for 2025.

The sanction serves as another reminder that sportsbooks must ensure their operational practices remain aligned with legal and ethical standards in an increasingly scrutinized U.S. gambling landscape.

By fLEXI tEAM