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New York lawmakers are taking steps to protect the state’s mobile sports bettors with the introduction of a new proposal called the ‘Fair Play Act.’
Introduced by Assemblymember Alex Bores on September 26, it seeks to prevent sportsbooks from imposing limits or bans on customers simply because they win frequently or place numerous bets. This legislation is currently under review by the Assembly Committee on Racing and Wagering.
Responsible gambling exceptions
If passed, this bill would make New York the first state in the US to implement such protections for bettors, although other states have explored similar issues regarding the treatment of winning players.
While the act prohibits limiting bet sizes based solely on winning frequency, it does allow for exceptions related to responsible gambling practices or integrity concerns.
Massachusetts, Wyoming also considering move
Both Massachusetts and Wyoming are examining the issue of sportsbooks limiting bettors. The Massachusetts Gaming Commission (MGC) has conducted extensive research, including hearings with sportsbook operators, to prioritize consumer protection.
Last year, the MGC requested data from operators regarding how often limits are applied, and the findings were recently released.
“Analysis confirmed that players who consistently beat the closing line are likely to have a lower stake factor, meaning have their limit lowered, and players who do not consistently beat the closing line are more likely to have a higher stake factor, meaning have their limit raised,” Carrie Torrisi, head of the MGC’s Sports Wagering Division, told the commission.
The data revealed that just over half a percent of bettors encounter limits, with the degree of restriction varying widely. MGC Chair Jordan Maynard noted that this information supports complaints from bettors while also acknowledging that sportsbooks need to manage their risk effectively.
The MGC expressed a desire for improved communication with bettors about the reasons behind any limits, but no formal actions have been taken yet.
Meanwhile, the Wyoming Gaming Commission has also explored this topic. Their investigation showed that fewer than 1% of accounts face limitations, with less than 10% of those cases stemming from bettors taking advantage of a sportsbook’s mistakes.
“Given all the data we’ve collected, staff does not see a problem in Wyoming with the limiting of sports wagering,” a report found.
Major operators argue against restrictions
Major sportsbook operators are gearing up to oppose any new regulations that could harm their profits in New York. During the initial discussions around sports betting legalization, these companies voiced strong objections to the state’s high tax rate of 51%.
Now, as proposed restrictions regarding customer limits come to the forefront, executives from companies like DraftKings and Penn Entertainment are raising concerns about the potential negative impacts on their businesses.
DraftKings said in its fiscal year 2023 report: “It is customary for sports betting operators to manage customer betting limits at the individual level to manage enterprise risk levels.”
“We believe this practice is beneficial overall, because if it were not possible, betting options would be restricted globally and limits available to customers would be much lower to insulate overall risk due to the existence of a small segment of highly sophisticated syndicates and algorithmic bettors, or bettors looking to take advantage of errors and omissions on our platforms.”
They argue that the ability to limit certain customers is essential for managing risks associated with sharp bettors, who can significantly affect the bottom line. Despite these concerns, New York’s sportsbooks have enjoyed significant financial success, with over $74.9 billion in wagers placed since the market launched in 2019.
This surge was especially pronounced following the mobile betting rollout in January 2022, which contributed to more than $3.4 billion in tax revenue and $6.7 billion in operator revenue.
Source: iGB
