Massachusetts could become the first state in the country to implement a regulation requiring sportsbooks to reveal when and why they are limiting bettors.
The Massachusetts Gaming Commission discussed two proposals this week. Commissioners voted 5-0 to move forward with a plan that would require operators to notify bettors when their action is limited. Additionally, the sportsbooks must explain why the gambler was limited.
Sportsbooks have a maximum amount each client can wager on a specific bet. However, operators limit certain gamblers to an amount much smaller than that. Historically, this is a tactic sportsbooks use to keep sharp bettors from winning too much.
“We are the first jurisdiction to take up this issue,” MGC Chairman Jordan Maynard said. “This was not an easy topic to take on, but it’s a good thing for the citizens and patrons of the commonwealth.”
Protecting Consumers
The first proposal requires operators simply to tell users that their betting had been limited. Then, commissioners approved a second measure requiring Massachusetts sportsbooks to give an explanation. They forced sportsbooks to tell the bettor why they were limited and which markets were affected.
Commissioners viewed the proposal as a way to protect consumers. Moreover, they felt bettors had a right to know why an operator would no longer accept their wagers.
“I’ve always been of the feeling that at the very least, we need to let the folks know why they’re being limited,” commissioner Brad Hill said. “I don’t see why we wouldn’t take that extra step if we’re going to tell you that you’re being limited. And I don’t really think that this is a hard thing to do for the operators.”
Total sports betting revenue amounted to $671 million in 2024, the state’s first full year of operation after launching in 2023. The vast majority of the bets are placed online, with mobile wagers accounting for 99% of the total handle.
Small Number Of Bettors Affected
Some commissioners also expressed concerns that the proposal didn’t go far enough and more could be added later. The plan comes after the MGC looked at the issue for the last 18 months, including meeting with sportsbooks.
It found that just slightly over 0.6% of all sports betting accounts had been limited in Massachusetts.
Legislators in New York have also considered a similar move. Wyoming regulators declined to move forward with a proposal because they felt only a tiny percentage of gamblers were affected.
Since the Supreme Court overturned a federal ban on sports betting outside of Nevada, the country has seen legalization expand to 39 states and Washington D.C. along with US territory Puerto Rico.
The American Gaming Association reports that nine in 10 Americans view sports betting as an acceptable form of entertainment and 75% support legal sports betting in their home state.
