On Tuesday, sportsbook operators made their feelings known without saying a word regarding the famous sports betting practice of limits.
Long-term winning sports bettors know the battle to defeat the bookies isn't restricted to developing a winning strategy. A bigger duel occurs between winning sports bettors and sportsbooks — the limiting of players.
Limits are a controversial topic in the sports betting world. Sportsbooks have the ability to "limit" winning sports bettors in each legal sports betting state across the United States, in order to protect their potential risk and downside.
In an effort to maximize revenue and minimize losses as much as possible, a near total majority of sportsbooks will restrict the bet sizing of bettors who are deemed to have developed a winning long-term strategy. This can be done in a multitude of ways, such as restrictions on money wagered, live betting or prop markets.
While bettors are continuously frustrated with the practice, as it allows sportsbooks to increase limits for those deemed losing players and decrease them for those deemed winners, there isn't much that could stop the practice from occurring.
The Massachusetts Gaming Commission is looking to find a resolution — or at least learn more — for the practice. The MGC held a public hearing on Tuesday regarding the practice of limiting bettors, but the state's operators had no interest in divulging any of their strategies or efforts on the matter.
Per bookies.com and Bill Speros, MGC Chair Jordan Maynard stated that, "We are the first jurisdiction that I know of to tackle this kind of head on, and so we want to make sure that we get this right. We don't want to rush this conversation. We want to make sure all the appropriate voices are at the table."
However, operators such as DraftKings, FanDuel, Caesars, Fanatics and ESPN Bet (PENN) all declined to make any comment on the practice of limiting sports bettors.
In a statement, DraftKings commented, "After careful consideration, DraftKings decided not to participate in the Massachusetts Gaming Commission roundtable regarding wagering limits, because among other things, any meaningful discussion on wagering limits would necessarily involve the disclosure of DraftKings’ confidential risk management practices and other commercially sensitive business information. DraftKings looks forward to working with the Commission to explore alternative ways to contribute to this discussion, while preserving the confidentiality of that information."
If the MGC is able to make any progress on revealing the operator side of the equation regarding limits, it would be a big step in shifting the balance of power in the sports betting world and could be the beginning of massive change in the sports betting industry.
If, in theory, the practice of limiting players were to be outlawed in Massachusetts, or if operators had to inform bettors of why they were being limited, some uncomfortable questions would have to be answered by operators. This could potentially lead to a domino effect in the industry, as operators balanced a number of considerations.
For now, sportsbook operators hope to maintain the status quo, and the MGC is taking a step toward addressing limits.
