Online sports betting companies face increasing scrutiny over how they treat both frequent winners and those who lose significant sums. State lawmakers question their strategies, particularly a practice called “limiting,” which restricts successful gamblers. Brianne Doura-Schawohl, from the Campaign for Fairer Gambling, criticizes this as unfair since advertising implies universal success.
U.S. lawmakers recently addressed their concerns in a letter to gambling platforms, highlighting how perks distract frequent losers from financial losses. These perks include exclusive events and celebrity interactions. However, successful gamblers, or so-called “sharps,” face restrictions. Bets may be capped as low as 50 cents, essentially sidelining them. For instance, Mike Manning, a professional bettor, found himself severely limited on platforms like DraftKings and BetMGM, despite employing analytical methods for his bets.
Manning expressed dissatisfaction over being restricted: “You’re exploiting the losing bettor, you’re taking advantage of them, and guys like me get shown the door.”
Limiting captured the Massachusetts Gaming Commission’s attention in 2024. Their investigation revealed a pattern: successful gamblers experience reduced limits, while consistent losers see theirs increased. This practice, described as the “ban or bankrupt” model by bettor Gadoon Kyrollos, raises fairness concerns.
Massachusetts now requires notifications for those limited and mandates reasons for limitations. FanDuel cited “wagering patterns” as the cause for Manning’s restrictions, while DraftKings emphasized “internal risk management.” Yet, according to DraftKings, only 0.15% of accounts face such measures.
In contrast, the story of Chris Swett, a former attorney, highlights the risks for losing gamblers. Swett admitted to embezzling $2 million to sustain his gambling on FanDuel, lured by VIP benefits after betting $25,000 monthly. His VIP status provided access to events and bonuses, fueling his addiction and leading to his downfall. Swett now faces a prison sentence for his fraudulent activities.
Swett commented, “I take personal responsibility for everything I did, but it just seems like their system was designed to keep me playing.”
FanDuel responded, noting improvements in VIP program management, including enhanced customer protection tools and staff training to prevent gambling issues. They stressed their platform’s entertainment purpose, not as an income source for professional bettors, and mentioned state regulators’ oversight of their measures.
If you or someone you know struggles with gambling, reach out to the National Problem Gambling Helpline at 1-800-MY-RESET, or visit Gamblers Anonymous at 1-855-222-5542 for assistance.