Massachusetts requires sportsbooks to disclose betting limits

The Massachusetts Gaming Commission adopted a rule effective June 1 that requires sportsbooks to notify customers when they are being limited and to state the reason for the restriction. The regulation responds to complaints that winning customers were being sidelined without explanation.

Under the rule, operators must tell bettors why limits are imposed. Examples of notices sent to customers include FanDuel citing “pricing inefficiencies and/or market timing” and BetMGM warning that playing “low-volume or unusual markets” could lead to limits. Several bettors reported that some operators closed accounts instead of issuing a limiting notice.

An MGC spokesperson wrote that the regulation was aimed at limiting practices and did not contemplate account closures. The commission said it will monitor operator behavior and follow up if closures become a widespread substitute for formal notices.

Jordan Maynard, chair of the Massachusetts Gaming Commission, issued a statement noting the agency is the first regulator to address sportsbook limits and that commissioners will continue to review the policy and work with staff and operators to ensure it produces the intended impact.

Sigma Squirrel, a board member of American Bettors’ Voice who consulted with the commission, told reporters that limits often affect skilled bettors and occur more frequently than operators report. He added: “Sportsbooks put bets on sale. They offer the price. They priced it. I’m buying the product they offered to me, and now they don’t wanna do business anymore.”

Sigma Squirrel explained that large menus of betting options make it difficult for operators to price every market precisely, which can leave mispriced lines that sharp bettors exploit. Player advocates argue that restricting winning customers while offering much higher limits to some high-stakes players may deplete the funds of recreational bettors and reduce overall handle. Prediction markets have been cited as an alternative destination for bettors who face tight limits at traditional sportsbooks.

DraftKings CEO Jason Robins has publicly stated that customers trying to win are not the kind the company seeks to retain. Critics say selectively restricting skilled bettors while allowing higher limits for VIP customers creates unequal treatment across customer segments.

The commission has scheduled meetings on June 18, July 1 and July 16; none list a revision of the limiting regulation on the agenda. Regulators said they will reassess if account closures replace formal limiting notices on a broad scale.