It is starting to look more and more like gambling limits may be coming to the Massachusetts sports betting market.
To be clear, nothing is official at the moment. But the winds do appear to be shifting in this direction. After initially resisting attempts to impose gambling limits on online sports betting in Massachusetts, The Bay State’s sportsbooks are reportedly willing to discuss these exact changes.
Make no mistake, this is a big deal. The last time Massachusetts sports betting regulators talked about gambling limits, none of the state’s licensed sportsbooks showed up. Granted, their attendance was not deemed mandatory. But members of the Massachusetts Gaming Commission expressed their dismay at the time. And it is starting to seem like the sportsbooks took their sentiments to heart.
What Do “Gambling Limits” Actually Mean?
Before diving into the latest Massachusetts sports betting developments, we should first explore what is actually happening.
When people hear the phrase “gambling limits,” they most likely think of imposing restrictions on how much users can bet per wager, day, week, month or something else. This is somewhat correct.
While the spirit of this interpretation is accurate, the issue with Massachusetts sports betting limits strays from typical perception. The Bay State is not looking to implement a universal cap on how much people can bet. Instead, they are trying to understand why and how Massachusetts sportsbooks impose their own gambling limits on certain users.
The Massachusetts Gaming Commission has repeatedly said that they receive complaints from customers about being limited by sportsbooks. This should not be an issue if there is a clear rhyme or reason to these restrictions. But the MGC has struggled to understand what policies the sportsbooks have in place.
“We’re here trying to solve a problem, we don’t want to start an uncomfortable conversation for fun,” Interim MGC Chair Jordan Maynard said, per Legal Sport Report’s Pat Evans. “We see the differences in complaints. We’re concerned about the casual bettors that get caught up in the controls. We have to come up with better ideas, and always want to create a better mousetrap.”
Put another way: Massachusetts sports betting regulators want to make sure that machinations designed to detect suspicious activity—or limit problem gamblers—aren't adversely impacting the user experience for customers that don’t fall into either bucket.
Every Massachusetts Sports Betting Operator Showed Up to Recent Meeting
Dialogue is important on an issue like these gambling limits. Online sportsbook protocols are often opaque. Companies view so much of their data as proprietary and are not willing to release it. That stance seems to be the driving force behind the rampant no-shows at the gambling limit meeting over the summer.
Attendance is no longer an issue for this Massachusetts Gaming Commission initiative, though.
Eight operators that offer online sports betting in the United States are currently licensed in The Bay State. Every single one of them reportedly showed up to the latest meeting.
What’s more, they apparently arrived with an open mind—and, equally important, open books.
Massachusetts Sportsbooks Provide Details on Gambling Limits
Massachusetts sportsbook representatives were ready and willing to get into the gambling-limit weeds. Though it does not seem like they delved into their specific processes, they did outline the criteria they have for identifying accounts that warrant gambling limits.
Here is Evans with the full lowdown:
“Representatives from licensed Massachusetts sportsbooks laid out how they decide to limit users. Jeremy Kolman, deputy general counsel at BetMGM, said it limits approximately 1% of Massachusetts bettors. Cory Fox, FanDuel vice president of risk and compliance, said very few limited bettors show up in customer service. Regardless, he and the other operators said they would work with the commission to cut down on limiting casual bettors…Sarah Brennan, BetMGM senior director of compliance, said the sportsbook looks at wagering patterns, irregular behavior and bonus abuse to make limiting decisions. Kolman said BetMGM looks at a number of factors from bettors, including: capitalizing on errors, syndicate betting, wagering inconsistent amounts, and betting on markets with lower liquidity and higher volatility. Kenneth Fuchs, Caesars COO and head of sports, said the sportsbook also looks for suspicious activity related to geolocation, anti-money laundering, bots and account sharing.”
Other topics were discussed as well. Chief among them: The MGC wants to know what behavior or patterns trigger gambling limits.
As one example, the committee wondered whether Massachusetts sports betting operators only imposed restrictions after winning bets. The answers given largely danced around the inquiry. However, Fanatics sportsbook SVP of Regulatory Compliance Alex Smith says that most bettors are net losers at the time limits are introduced.
Will Adjustments be Made to Massachusetts Sports Betting Limits?
No official changes were agreed upon during this latest Massachusetts sports betting summit. With that said, Massachusetts online sportsbooks did say they will work to prevent gambling limits from being imposed upon casual bettors.
How The Bay State’s operators plan to do that remains to be seen. Rest assured, though, the Massachusetts Gaming Commission will not let this issue slide.
As many have noted, bettors unable to place wagers with Massachusetts sportsbooks often return to gambling with offshore operators. Officials are naturally concerned about this trend. Not only does this mean that revenue is leaving the state, but offshore markets are unregulated by the United States and, therefore, poses a greater risk to users who fail to do their due diligence.
Given the attention that the MGC has already paid to this issue, we expect them to follow through on their gambling-limit concerns. Do not be surprised if this becomes an even more pressing topic as Massachusetts prepares for their 2025 legislative meetings.
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