Betting companies cap winners while lavishing losers with rewards
Summary
Sports betting companies may restrict the bets of successful customers while offering perks to frequent losers, drawing scrutiny from lawmakers and state regulators. Massachusetts found that winning bettors tended to face lower limits while losing bettors received higher ones, and it now requires companies to explain restrictions to affected customers.Key Facts
- U.S. lawmakers wrote to major betting platforms about perks offered to frequent losers, saying the rewards could distract them from losses and encourage more betting.
- Professional bettor Mike Manning said DraftKings capped his bets at $25 and BetMGM reduced his maximum wager from $1,000–$5,000 to $5.
- The Massachusetts Gaming Commission investigated betting limits after sports gambling launched in the state in 2023.
- The commission found a pattern in which companies lowered limits for winning gamblers and raised limits for losing gamblers.
- The commission reported that 0.64% of Massachusetts betting accounts had been restricted.
- Massachusetts became the first state to require betting companies to notify customers of restrictions and explain the reasons.
- A DraftKings betting ticket shared with CBS News showed a maximum wager of 49 cents on the NBA Cup.
- A New Jersey attorney said limiting is legal unless it discriminates against customers based on protected traits such as race or religion.
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