Massachusetts Rule Sets Path Toward Fairer Play for Sharp Bettors, Safer Play for Losers
American Bettors' Voice is in talks with other states about passing similar rules regarding how certain bettors are treated by sportsbooks.
It won’t stop sportsbooks from limiting winning customers, but a rule passed last week by the Massachusetts Gaming Commission is the first of what player advocates hope are several steps toward regulating limiting.
The rule, passed by a unanimous 5-0 vote, requires operators to inform bettors they’re being limited within 48 hours, explain the reason for the decision, and list the affected markets.
While Massachusetts is the first state to impose such a regulation, American Bettors’ Voice, which consulted with the MGC about the new rule, has the ear of other regulators.
“We are engaged in conversations with other states,” the ABV board member known as Sigma Squirrel on Twitter, told Gambling Insider. “I can’t tell you what other states, but I can tell you that American Bettors’ Voice is assisting other states with similar processes.”
Sharps Still Not Welcome?
The move addresses the maligned practice of sportsbooks effectively kicking out sharp bettors. Sharps will still be kicked out; they’ll just be told they’re being kicked out, rather than seeing their bets for anything more than pennies rejected.
“It’s a really important first step,” Sigma Squirrel added. “… It is not going to have any effect on sportsbooks limiting their customers, but it is going to raise awareness with other state gaming commissions that limiting is a practice, and it needs to be regulated.”
Even as written, there’s skepticism about the new regulation.
“I’m cautiously optimistic that it’s a step in the right direction,” professional bettor and Unabated founder Captain Jack Andrews, who participated in MGC hearings about the practice of limiting, said in an email. “But of course, we don’t know yet what the reality of it will be. Will the operators find some loophole? Will the regulators fail to enforce it as written?
“Unfortunately, the road to hell is paved with good intentions.”
Winners Limited, Losers Lavished
While not every gambling industry observer is overflowing with sympathy for sharp bettors, limiting winners is just part of sportsbooks’ model for profitability. Incentivizing losing bettors to play bigger is another part.
Responsible gaming advocates see this as a problem. Customers exhibiting behaviors of problem gambling should be cut off, not encouraged to bet more by being lavished with VIP treatment.
ABV made sure the MGC understood this.
“American Bettors’ Voice assisted the MGC with crafting the data request that led to regulation,” Sigma Squirrel explained. “[We] helped them prove that winning bettors get limited and losing bettors get VIP. …
“Most state gaming commissions do not sufficiently understand that dynamic.”
A Fairer and Safer Structure
The hope for sharp bettors is that Massachusetts keeps pushing forward for their cause. Perhaps one day, sportsbooks will be forced to let all players play.
The next step, per ABV’s position, would be to set minimum house limits for all markets on the wagering menu. Under the ideal structure, a maximum bet for a VIP customer would be set as a function of the minimum house limit.
If a pro was limited to $1,000 on an NFL side, for example, a VIP’s max bet might be $10,000, or 10 times the minimum house limit.
“With that type of regulation, you are dealing a fairer game,” Sigma Squirrel said, “just like when you walk in a brick-and-mortar casino and you see a posted minimum and a posted maximum. The max is always a function of the minimum.
“That’s more fair, and it also is the right way to address problem gaming, because there is no reason on earth why a sharp bettor can be restricted to 1% whatever their in-house limit is for that menu item, where a VIP customer can get 1,000x that number. That is how people get into trouble.”
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
