As Massachusetts Examines Betting Limits, Online Betting Companies Lavish Losers With Rewards While Capping Winners

Limits can shift with results

DraftKings said in a 2023 filing with the U.S. Securities and Exchange Commission that it sets customer betting limits using individual profiles and the company’s risk level. Brianne Doura-Schawohl of the Campaign for Fairer Gambling argues that the system is unfair amid widespread advertising that promotes the possibility of winning.

Manning said several platforms reduced his wagering limits after he began winning regularly. He reported a $25 cap per bet on DraftKings and said BetMGM cut his allowed wagers from $1,000 to $5 per game. Michael Trevithick, of Ann Arbor, Michigan, shared a DraftKings ticket showing a 49-cent maximum wager on the NBA Cup.

Regulators and legal questions

The Massachusetts Gaming Commission examined betting limits in 2024 and required companies to answer questions and provide data. Following an investigation the next year, it found that limits tended to fall for winning customers and rise for those who lost.

New Jersey attorney Matthew Litt said the practice is legal unless companies discriminate on protected grounds, including race or religion. DraftKings told Manning its decision was made for internal risk management.

Perks, losses and responses

A letter cited perks such as celebrity videos, exclusive events and Super Bowl tickets, saying they can distract customers from losses and spur further betting. Swett said a FanDuel employee told him in 2019 that customers spending $25,000 monthly could qualify for a VIP host, who offered sporting-event tickets and fantasy contest entries if he wagered enough.

Swett said he was overwhelmed but continued receiving incentives. Over two years, he said, he wagered $11 million and lost about $1 million; after running out of money, he admitted to defrauding his law firm and its clients with fake invoices. He faces up to 20 years in federal prison. FanDuel said customers have tools such as deposit limits, timeouts and self-exclusion, and that platforms may restrict sophisticated strategies to manage financial risk.

The National Problem Gambling Helpline offers support by call or text at 1-800-MY-RESET. Gamblers Anonymous has a national hotline at 1-855-222-5542.