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Massachusetts last week approved the country’s first rule requiring sportsbooks to give players clear notice when their accounts are restricted. The regulation, passed by the Massachusetts Gaming Commission in a unanimous 5-0 vote, obliges operators to notify bettors within 48 hours, explain the reason for the limit, and specify which markets are affected.
The rule followed a public comment period and an initial reading in December. It takes effect on June 1, with notices not only for future restrictions but also for players who have already been limited in the state.
Around 13,400 accounts were limited according to study
A review by the Massachusetts Gaming Commission found that operators restricted about 0.64% of the state’s 2.1 million online wagering accounts, roughly 13,400 players. No reasons were given in the data, though bettors argued their limits came after big wins or successful parlays.
Operators countered that some restrictions were tied to concerns over problem gambling. Complaints from customers first pushed regulators to examine the issue, with sportsbooks defending their practices during a public meeting in September 2024.
BetMGM’s compliance director, Sarah Brennan, told commissioners, “To effectively manage risk, we limit a small minority of patrons that we consider to be advantaged players who attempt to take advantage or find ways around our risk management framework,” adding that only 1% of its Bay State customers are affected. She stressed that limiting those players allows the company to keep odds and markets competitive for everyone else.
“This group of limited patrons, many of whom self-identify as professional bettors, is loud in insisting that limiting patrons is a pervasive practice by operators. However, this is not accurate; it is actually the opposite.”
American Bettors’ Voice helped shape the data requests and later argued the findings confirmed what bettors had long claimed. Board member Adam Robinson said, “Regulated sportsbooks systematically restrict successful bettors while increasing limits for losing players,” calling the practice unfair and urging regulators to adopt minimum posted limits across all bets.
ABV’s proposal would require operators to set minimum limits tied to the maximum stake offered. For example, if a market allows a $10,000 wager, every customer should be able to place at least 5% of that amount, a $500 bet. The group argued that such rules would bring transparency and fairness to how limits are applied.
Prediction market mentioned
During the meeting, Commission Chair Jordan Maynard also criticized prediction markets, noting that operators such as Fanatics, FanDuel, and DraftKings run sports-event contracts outside Massachusetts.
“The expectation of the Commission is not to put window dressing or wallpaper on this issue. It’s to actually tackle the issue,” Maynard said. Massachusetts has already blocked Kalshi from offering its contracts in the state, following a court ruling last month.
“I rarely talk to the operators and say that I am. Those who advocate for those pseudo-regulated, so-called prediction market products use the fact that they are not limited as a positive for their product. I think that as far as the operators can possibly push their business model to be transparent on this piece is a net positive, ultimately. You may see it as a net negative now, but for consumers, I think it’s a net positive.”
Source: Bookies
