Massachusetts‘ gambling regulator has proposed a new regulation that would make the state the first in the U.S. to require sportsbooks to inform their users when and why their betting activity has been limited.
At a meeting on Thursday, Massachusetts Gaming Commission (MGC) Deputy General Counsel Justin Stempeck presented commissioners with two options for the language of a new rule aimed at changing how sports betting operators approaching limiting players. Commissioners voted 5-0 in favor of putting forth a proposal that, if ultimately approved and enacted, would require legal sports betting operators to notify players that their activity has been limited, and explain why.
The proposed change will be opened up for public comment and hear from operators, other stakeholders and the public on the proposal. After feedback is reviewed and potentially incorporated, a formal commission vote would be required to officially adopt it.
“We are the first jurisdiction to take up this issue,” said Chair Jordan Maynard. “This was not an easy topic to take on, but it’s a good thing for the citizens and patrons of the Commonwealth.”
Transparency is key, say regulators
The first of the two options put before commissioners used language that would have mandated operators to provide timely notice to patrons that their wagering activity had been limited, but nothing more. The more rigorous Option B, the one that was unanimously selected, will require sportsbooks to not only give such notice but also include specific explanations of why the users have been limited, and which betting markets are affected.
“The operators keep telling me they’re not limiting many people,” Maynard remarked. “If they’re not limiting many people, they should be able to tell people why they’re limiting them.”
“I’ve always been of the feeling that at, the very least, we need to let the folks know why they’re being limited,” commented Commissioner Brad Hill during the meeting. “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.”
“Just providing notice is going to beg the question, right?” added Commissioner Paul Brodeur. “I’m not sure that is going to satisfy any patron. Full disclosure and transparency, providing that additional information, makes sense.”
Commissioners Nakisha Skinner and Eileen O’Brien both suggested that even Option B may not be sufficient, as far as they are concerned. Maynard floated the idea of imposing even more stringent measures further down the line.
A long time coming
The MGC has undertaken more than 18 months of consultation and consideration on the topic of bettor limits.
The regulators asked licensed in-state operators to take part in a roundtable in May 2024, but Bally’s was the only one to show up. A meeting eventually happened in September 2024, when personnel from various sportsbooks said that while they do limit some gamblers, it affects a very small proportion of players. Sportsbooks mostly positioned it as a measure to manage risk and liability exposure.
The MGC subsequently requested data from its seven sports wagering licensees on their limiting practices and presented the findings at a meeting on Sept. 30. The commission’s analysis concluded that sportsbooks were right when they said it only affects a small proportion of users, finding that 0.64% of all sports betting accounts in Massachusetts had limits imposed on them.
New York mulls legislative action
Massachusetts has led the field in tackling sportsbook limiting, but it is not the only state that has the topic on its radar. Wyoming took a very different approach, as a Wyoming Gaming Commission report presented in May found limiting is so rare that it should not be a meaningful concern for the regulator.
In contrast, in one of Massachusetts’ neighbor states, New York, the issue has hit the state legislature.
Democrat Asm. Alex Bores‘ A9125 aims to prevent sports betting operators from limiting or banning authorized bettors based on their success rate. It would also require sportsbooks to provide written notice to any bettor to explain the reasoning behind and the nature and parameters of the limitations, much like the regulatory measure Massachusetts just green-lit. Exemptions would be made if the betting activity was deemed to constitute suspicious wagering activity or to be a sign of problem gambling.
