Betters limited to 49 cents while losers get perks

Online sports betting platforms are limiting the stakes of winning customers to as low as 49 cents per bet. This practice, known as limiting, effectively cuts off successful gamblers while companies offer perks to those who lose large sums. Regulators and advocates say the disparity creates an uneven playing field for professional bettors and casual users alike.

The Massachusetts Gaming Commission investigated this trend after receiving questions from state lawmakers. The regulator found that winning gamblers generally had their betting limits decreased, while losing gamblers saw their limits increased. Only 0.64% of betting accounts in Massachusetts were restricted. Brianne Doura-Schawohl, director of the Campaign for Fairer Gambling, argues that the house ensures it always wins. She noted that pervasive advertising suggests anyone can win, making the limits feel unfair.

Mike Manning, a full-time professional bettor using mathematical models, experienced these caps directly. After signing up for every available app when Massachusetts launched sports gambling in 2023, he was winning on nearly all platforms. DraftKings limited his bets to $25, and BetMGM reduced his stakes from $1,000 to $5,000 down to just $5. Manning described the treatment as predatory, stating that losing bettors are exploited while successful ones are shown the door. Gadoon Kyrollos, another professional bettor, called it a ban or bankrupt model.

Companies cite risk management as the reason for these restrictions. DraftKings told Manning the action was for internal risk management purposes. A spokesperson said the company applies specific limits to less than 0.15% of accounts. They stated these decisions are based on customer behaviors, regardless of whether a customer is winning or losing. DraftKings also referenced a 2023 SEC filing where it explained that it manages betting limits based on individual customer profiles and risk levels.

The contrast is sharp for losers, who often receive VIP treatment. Chris Swett, a former South Carolina attorney, pleaded guilty to wire fraud and money laundering after stealing $2 million to fund gambling on FanDuel. He said a VIP host encouraged him to bet more by offering free tickets and bonuses. Swett wagered $11 million over two years and lost about $1 million. He faces a maximum of 20 years in federal prison. FanDuel said it has made changes to its VIP program, including additional training and new technologies to identify problem gambling.

Massachusetts became the first state to require gambling companies to notify gamblers when they are limited and to provide a reason. FanDuel told Manning he was restricted due to an assessment of his wagering patterns and their impact on the company's long-term risk position. Matthew Litt, a New Jersey attorney, said the practice is legal as long as companies do not discriminate based on protected characteristics. BetMGM declined to comment on the findings.

The National Problem Gambling Helpline offers resources at 1-800-MY-RESET. Gamblers Anonymous provides a national hotline at 1-855-222-5542 for those seeking support.