Massachusetts has proposed new regulations requiring licensed sportsbooks to notify bettors when their wagering activity is restricted. This regulation mandates that operators provide a direct explanation to affected bettors.
The Massachusetts Gaming Commission unanimously voted 5-0 on Thursday to move forward with a proposal ensuring that legal sports betting operators must communicate with users when limits are enforced on their betting activities. Deputy General Counsel Justin Stempeck presented the rationale and two potential regulatory frameworks regarding sportsbook limit practices.
The commissioners opted for the more comprehensive framework, which not only necessitates notifying bettors about imposed limits but also mandates explaining the reasons behind these limits and identifying the specific betting markets impacted. Should the proposal be approved and implemented, it will extend to all licensed sportsbooks within the state.
“We are pioneering this initiative as the first jurisdiction to address this issue,” stated Chair Jordan Maynard. “Though the subject matter is complex, it’s ultimately beneficial for the citizens and patrons of the Commonwealth.”
The proposed regulation will enter a public comment phase, granting sportsbooks, industry stakeholders, and the general public the opportunity to provide feedback. Following a review of these comments and any necessary revisions, the commission will be required to put the rule to a formal vote for approval.
Stempeck explained to the commissioners that the two options primarily diverged in terms of detail. The alternative option would have only required basic notification without further elaboration. The approach chosen by the commission entails additional transparency regarding the reasons for limiting actions.
During the meeting, multiple commissioners raised concerns about how sportsbooks enforce limits and questioned the feasibility of complying with the proposed guidelines.
“Operators claim they limit very few bettors,” Maynard remarked. “If that’s true, they should be able to articulate why limits are being applied.”
Commissioner Brad Hill advocated for the obligation to provide explanations. “At the very least, we should inform individuals why they’re being limited,” Hill stated. “It seems reasonable to take this step to enhance transparency, and I believe it’s not overly burdensome for operators.”
Commissioner Paul Brodeur posed that mere notification may not sufficiently resolve bettor concerns. “Simply offering notification raises fundamental questions, right?” he expressed. “I’m not convinced that this alone will satisfy any bettor. Full transparency and comprehensive disclosure are clearly necessary.”
Commissioners Nakisha Skinner and Eileen O’Brien conveyed that the chosen option might still not sufficiently address all concerns, with Maynard suggesting the potential for further measures in future discussions.
This proposal emerges following over 18 months of focused examination by the commission specifically on the practice of sportsbook limitations. In May 2024, regulators invited licensed operators for a roundtable discussion, which saw participation only from Bally’s. A broader meeting in September 2024 was held where representatives from several sportsbooks informed regulators that limiting actions pertain to a small fraction of clientele, primarily used to control risk and liability.
Subsequently, the commission gathered data from its seven licensed sports wagering operators and presented its findings during a meeting on September 30. The analysis revealed that only 0.64% of all sports betting accounts in Massachusetts faced imposed limits.
While Massachusetts is leading in examining sportsbook limits, other states are also exploring the issue, although their approaches differ. In Wyoming, a report by the Wyoming Gaming Commission in May concluded that limit enforcement is rare and does not necessitate regulatory intervention.
Meanwhile, in New York, the matter is being approached through proposed legislative action. Democratic Assemblymember Alex Bores introduced A9125, which seeks to ban sportsbooks from placing limits or banning approved bettors based on their success rate. The bill would also mandate written notifications explaining the rationale and scope of any imposed limits, with exceptions for activities deemed suspicious or indicative of gambling problems.