Massachusetts May Force Sportsbooks to Explain Why They Limit Some Bettors — but Not Others

Geoff Zochodne, Covers

Sportsbook operators in the Bay State could soon be forced to explain why it may be that winners aren’t welcome in their establishments — digital or otherwise — while losers are free to keep frittering away their cash. 

The Massachusetts Gaming Commission (MGC) met Thursday and discussed “Sports Wagering Operator Wager Limitations,” the bane of winning sports bettors’ existence.

Those limitations are applied to certain sporting events to help with risk management and to protect the integrity of certain events, the MGC heard. However, commissioners were also told that limits can be set on a per-customer basis, meaning a patron trying to get down $1,000 for a bet may find they can only wager $100 instead, if that.

Gaming regulators have been more or less content to let sportsbook operators limit as they see fit, to the chagrin of sharps and professional bettors. Nevertheless, the MGC’s decision to start exploring the subject prompted bettors to reach out and share their limiting horror stories with the commission, which is preparing to dig deeper into the industry practice. 

“We did get some outreach, just so the public knows, through emails,” interim MGC chair Jordan Maynard said during Thursday’s meeting. “And there were several folks who said, ‘Hey, I’m betting pennies when I’m putting in the bet.’ And so, what’s the notification? And if you’re turning off a winning wagerer, are you turning off a losing wagerer?” 

 

A limit to limiting?

Massachusetts launched legal sports betting at brick-and-mortar casinos in January 2023, which was followed by the debut of online sportsbooks in March of last year. Hundreds of millions of dollars are now being wagered in the Bay State every month, including approximately $542.5 million with its sportsbooks in February.

Moreover, while there have been some recent exits from the commonwealth, there are still several major sports betting sites in Massachusetts, including Boston-based DraftKings. Yet the practices of those bookmakers, especially in how they handle winning customers, prompted enough outcry to garner an eyebrow-raising reaction from the MGC. 

The annoyance over the limiting of winning customers is not exclusive to Massachusetts either, as plenty of bettors in both the U.S. and Canada have been factored or otherwise restricted in how much they can get down at a licensed sportsbook.

In Massachusetts, however, bettors are wondering if limiting is legal at all. In the documents for the MGC’s Thursday meeting, staff noted that “[t]hrough public comment, a question has arisen as to whether a Sports Wagering Operator is authorized to limit the amount an individual patron may… wager.”

Andrew Steffen, the MGC’s sports wagering operations manager, said the state’s sportsbook operators are currently complying with the rules. That includes a regulation that more or less allows operators to decide the minimum and maximum wager they will take from a bettor unless the commission says otherwise.

 

Steffen said the commissioners can seek more information and possibly revisit their regulations in the future.

One concern about excessive limiting is that it can drive players to offshore and illegal sportsbooks instead of regulated ones in their home states. Members of the MGC, however, wondered about the fairness of limiting winners and encouraging losers, especially when the winners aren’t quite sure why they’re being shown the door. 

“I understand that there are probably legitimate business decisions that are made by our sports wagering operators here,” commissioner Nakisha Skinner said on Thursday. “I don’t discount any of those. But I do think there should be a way for patrons to really understand what might get them limited.”

Rest is here…