Legality of Banning Successful Bettors Laws & Regulations

Massachusetts Regulators Review Legality of Banning Successful Bettors

By Lisa Spencer Senior Editor Updated: 10 April 2024

Lisa Spencer Senior Editor

As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.

See Full Bio

It has been reported that gaming regulators in Massachusetts have investigated the often-controversial practice of sportsbooks banning or limiting successful bettors.

In a recent meeting of the Massachusetts Gaming Commission (MGC), the issue of sportsbooks limiting or banning successful bettors was discussed. This is a longstanding practice in the gambling industry, where bettors who are seen as too successful are restricted from further wagering.

The discussion took place at the end of March, with Andrew Steffen, the commission’s sports wagering operations manager, highlighting the matter. Steffen confirmed that there had been a public inquiry raised last year which questioned the legality of these limitations under Massachusetts’ sports betting regulations.

According to Steffen, the Sports Wagering Division of the MGC conducted a thorough review and concluded that the practice is permissible under the state’s existing regulations, specifically highlighting the ‘Minimum and Maximum Wagers: Additional Wagering Requirements’ statute.

Discussions with Sportsbook Operators on Limiting Successful Bettors

During the meeting, Steffen also revealed that discussions had been held with sportsbooks and that operators had defended the limitations placed on successful bettors.

He said that sportsbook officials had stated that these limitations were vital for risk management purposes and to uphold the integrity of sporting events. They also added that the restrictions were designed to help ensure fair competition in sports betting as well as to prevent undue influence on game outcomes.

However, it was also revealed that sportsbooks have been imposing limits on a per-customer basis. Officials said that professionals in gambling, who are known as sharps, often find themselves subjected to these limitations, which has led to frustration within the betting community.

In a bid to defend their practices, sportsbooks apparently pointed to their terms and conditions, which explicitly reserve the right to limit bettors as deemed necessary. DraftKings, which is one of the leading sports betting platforms in the United States, provided its house rules agreement. This highlighted the company’s authority and right to impose maximum bet limits at its discretion.

However, commission officials are concerned that sportsbook operators might have too much discretion in relation to this issue. This is something that officials want to look into, and it could lead to regulatory changes with regard to the restrictions and limits that sportsbook operators can impose on successful bettors moving forward.

Commissioner Eileen O’Brien said:

There’s a deeper issue here in terms of individual patrons. Their house rules talk very vaguely about management in their sole discretion. What I’m curious to know as a commissioner is, ‘What’s the basis [for limiting]?’

It was confirmed that the matter would be further discussed at future meetings to decide on the best way forward.

Sparking Debate Over Consumer Rights and Risk Management

The issue has also sparked debate over the balance between consumer rights and the rights of sportsbook operators to manage risk. While some argue that limitations safeguard against potential exploitation and maintain the integrity of the industry, others have said that it stifles legitimate betting strategies and discriminates against skilled bettors.