Massachusetts May Clamp Down on Limiting Sports Bettors

Regulators may be about to make a big change to the Massachusetts online sports betting market.

The Massachusetts Gaming Commission (MGC) is considering new restrictions around the common sportsbook practice of limiting bettors. The regulator has attempted to discuss how and when sportsbooks limit bettors in the past, but operators refused to engage. With some customers accusing the industry of limiting only winning bettors, the MGC believes clarity on the practice is needed.

The idea was discussed last week and may be voted on as soon as today. Expectations are that the regulator will enact new rules on how sportsbooks limit bettors, which is bad news for operators.

Sportsbook executives have made no secret of wanting to avoid sharps. They have argued that the ability to limit bettors allows them to avoid massive losses from big-money bets by smart players. 

While regulators can accept the risk management strategy, average bettors are also claiming to be facing limits. As soon as they start getting hot, their bet limit drops to as low as $1. With sportsbooks refusing to share their policies around limiting bettors, the MGC appears to believe some of those claims.

Integrity of Sports Betting at Issue in Massachusetts

The MGC’s focus is on protecting bettors, but that isn’t the only issue at stake.

If the accusations are to be believed, sportsbooks are creating markets where they can’t lose. The lack of regulations around limiting bettors allows operators to do so whenever they see fit. This ensures losses don’t stack up and their bottom line is covered.

While it's a smart financial decision, the questions swirling around the controversial practice are causing problems. If bettors don’t believe they can have a chance of winning big money, they will stop betting with regulated sportsbooks. 

Prediction markets are widely available in all 50 states, giving frustrated bettors an alternative to the regulated market. Their departure means less tax revenue for the state, giving the MGC reason to act.