Colorado regulators have issued a firm reminder to the sports betting industry regarding compliance in college markets, this time focusing their attention on BetMGM.
While the financial scope of the infraction was minor, the enforcement action highlights the increasing scrutiny US states are applying to collegiate player proposition bets.
The incident centered on a compliance lapse where BetMGM’s system inadvertently accepted 48 prohibited wagers over an 18-month period. Although the total handle for these bets was a modest $879.78, the Colorado Limited Gaming Control Commission treated the violation as a significant regulatory breach.
Under Colorado law, while betting on collegiate games is permitted, wagers on the individual performance of student-athletes are strictly banned to protect the integrity of amateur sports. This action follows a similar $40,000 fine issued to DraftKings in July for comparable violations.
The prohibited bets largely involved high-profile events, including props on star athletes Caitlin Clark, Angel Reese, and Paige Bueckers during the women’s March Madness regional finals in April 2024.
Additional violations were traced to two men’s NIT basketball games in March 2023 and a college football matchup between UNLV and Oregon State in October 2024. BetMGM identified the errors internally, self-reported the violations to the commission, and agreed to implement enhanced staff training.
During a meeting on November 20, regulators approved a $50,000 settlement to resolve the matter. The terms stipulate that $25,000 must be paid within ten days, while the remaining half is suspended for two years, pending continued compliance.
This enforcement aligns with a broader national trend. NCAA President Charlie Baker has actively campaigned for states to ban college player props to reduce harassment of student-athletes. Consequently, jurisdictions like Ohio, Maryland, Vermont, and Louisiana have tightened their restrictions.
For operators in Colorado and beyond, the message is clear: regulators are prioritizing market integrity over handle size, demanding rigorous menu management and immediate self-reporting of any compliance failures.
Christopher Schroder, Director of the Colorado Division of Gaming:
“By and large, the operators do a good job of avoiding those illegal bets in Colorado, and when they do [occur], they are very quick to report them to us.”
