BetMGM, a sports-betting company operating in Colorado, is the latest company to be fined for accepting proposition bets on individual college athletes’ performances during games.
BetMGM agreed to a $50,000 fine although the company will only have to pay half that amount if it avoids any more violations of Colorado sports betting rules for the next two years. The company also agreed to show proof to Colorado that it is properly training its live traders, who establish odds, on the state’s rules and how to set up bets in the Colorado market. The penalty was levied Thursday morning by the Colorado Limited Gaming Control Commission.
Accepting bets on individual college athletes’ performances in any sporting event is illegal in Colorado. For example, a Colorado sports fan cannot bet on whether a University of Colorado kicker will make a field goal during the third quarter. The same bet would be allowed for the Denver Broncos kicker because it is an NFL game and proposition bets are allowed in professional sports.
BetMGM is the second gaming company to be fined this year for violating the rule on college proposition bets, also known as prop bets.
DraftKing was fined $90,000 in July for accepting improper bets on a college basketball player’s performance in a 2025 NCAA basketball game and for accepting wagers on the 2024 Jake Paul-Mike Tyson boxing match, which the commission had determined was not a qualified sporting event per Colorado’s betting rules.
The BetMGM wagers were accepted during four college basketball games and one college football game.
The company received eight wagers totaling $346 during two 2023 National Invitation Tournament basketball games, according to a stipulation agreement between the company and Colorado’s gaming commission.
BetMGM also accepted proposition bets on games during the women’s 2024 NCAA basketball tournament, accepting a total of 35 wagers for $443.07, the stipulation agreement stated. Those games were between Iowa and Louisiana State University and the University of Connecticut and the University of Southern California. Those four games featured basketball stars Caitlin Clark, Angel Reese, Paige Bueckers and JuJu Watkins.
Finally, BetMGM accepted $90.71 for five prop bets during an October 2024 football game between University of Nevada Las Vegas and Oregon State University, the stipulation agreement stated.
The stipulation agreement did not specify which athletes’ performances were the focus of any of the proposition bets.
BetMGM reported the improper bets to state regulators, but the three violations led to a penalty, said Christopher Schroder, executive 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, they self-report,” he said.
Prop bets have become controversial in the United States after multiple professional athletes have been accused of altering their performances during a game to benefit bettors, who were made aware of their plans to throw bad pitches or miss basketball shots.
In October, the FBI unveiled a massive investigation into rigged betting, accusing Miami Heat guard Terry Rozier and five others of an insider sports betting conspiracy, and earlier this month two Cleveland Guardians pitchers were indicted on multiple felonies for agreeing to throw specific pitches during games.
Rules on prop bets vary by state, and now some states are considering outlawing all prop bets to avoid the temptation for athletes to rig games.