Massachusetts is now the first state to introduce regulations on controversial sports wagering limits.
The Massachusetts Gaming Commission on Dec. 17 unanimously approved plans to enact regulations that would require licensed sports betting operators to inform bettors that their wagering is being limited and explain why, as well as in which markets, or types of sports, their bets are limited.
The vote comes as commissioners have been investigating whether sports betting companies restrict how much can be wagered by players who have a history of winning while also allowing players who have a losing track record to risk greater amounts.
“The answer to that question is yes,” Carrie Torrisi, chief of the commission’s Sports Wagering Division told commissioners in September while presenting results of a years-long study into the inquiry. “The 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.”
Gaming regulators have been investigating the issue for years after player complaints grew louder and as survey data showed the introduction of legal sports betting did not compel many people to jump from the illicit market to the regulated one.
Sports betting companies have said about 1% of bettors are prevented from betting to what would otherwise be the maximum allowed wager amount. Torrisi said the commission’s data analysis showed it’s even fewer here — as of December 2024, 0.64% of Massachusetts sports betting accounts were limited.
“The operators keep telling me they’re not limiting many people, and Carrie [Torrisi] found that to be true. So, if they’re not limiting many people, they should be able to tell people why they’re limiting them, and explain when they’re going to get off the limitation, when they’re coming on and so forth,” commission chairman Jordan Maynard said during Wednesday’s meeting.
Torrisi and Justin Stempeck, interim general counsel for the commission, presented commissioners with two options for regulating sports betting limitations. Under one option, operators would have to inform users they are being limited. Under another, operators must inform bettors that they’re being limited and in which markets.
Commissioners overwhelmingly supported the second option.
“Transparency is the goal here, and I think to get to full transparency, at the very least, you have to have the information that this proposed regulation calls for made absolutely clear to patrons,” commissioner Nakisha Skinner said during the meeting.
Commissioner Eileen O’Brien agreed.
“I would add, from my view, it’s not just transparency, it’s also fundamental fairness,” O’Brien said. “So, I think this provides transparency, we get feedback, we start moving in this direction. But I do think fundamental fairness is part of the calculus as we move forward.”
Operators have stressed they don’t limit bettors based on outcomes, but rather based on activities and betting patterns. Limits are imposed by “stake factor” — a bettor with a stake factor of 1 can bet up to the maximum set for that event by the operator, while a bettor with a stake factor of 0.5 can only bet up to 50% of the operator-set maximum.
Cory Fox, FanDuel’s vice president of product and new market compliance, told commissioners that operators are not refusing to take action from these “advantaged” players but are taking steps to “manage our liability exposure and avoid unsustainable losses” from certain bettors. These include players who may be trying to capitalize on an operator’s pricing error or trying to get an advantage by placing live bets on a game they are physically attending.
Bettors from Massachusetts – and other states – have told commissioners their bets were limited with many saying they did nothing untoward.
Maynard has also raised concerns about bettors turning to the illegal market if operators continue to limit their bets. Wiping out the illegal sports betting market was goal when sports betting was legalized in 2022.
Maynard said he would like Torrisi to continue checking in on the issue and suggested to “do another sweep” of data next year to see if the regulation “moved the needle in a positive direction.”
Commissioners noted the vote is a start to a conversation and they will accept public comment on the regulation. It was not clear when the public comment period would begin. Commission spokesperson Thomas Mills said the vote Wednesday instructed staff to begin promulgating regulations. Once that process is underway, the proposed regulations will be posted and commissioners will begin accepting comments.
Katie Castellani is a reporter for State House News Service and State Affairs Pro Massachusetts. Reach her at kcastellani@statehousenews.com.