Massachusetts regulators are not done digging into the widespread practice among sportsbook operators of limiting bettors.
The Massachusetts Gaming Commission (MGC) met Monday and received reports from legal sports betting companies regarding their activities in the commonwealth for the first quarter of 2024, such as the revenue those bookmakers generated and the tax they paid.
All of the operators that presented declined to participate in a public roundtable on limiting Massachusetts sports betting players last month, citing concerns about discussing what they described as commercially sensitive information about managing risk.
Let's try this again...
The decision to avoid the public meeting caused some irritation and anger among commissioners. The absences were even noted during a recent attempt to hike the state's sports betting tax rate that ultimately failed.
Yet interim MGC chair Jordan Maynard noted near the end of Monday’s meeting that FanDuel contacted him last week to set up a follow-up discussion regarding the limiting roundtable the operator passed on.
Maynard added that the MGC plans to revisit the issue of bettor limits soon, as further discussion of the matter is scheduled for a public meeting on June 20.
“I will ensure that FanDuel and any other operator know that each commissioner will need to be updated in a way that is transparent and fully compliant with the [Massachusetts] open meeting law,” Maynard said. “That said, I wanted to acknowledge that reach-out. And I'm hopeful for the future as our learning on this issue continues.”
The online sports betting operators that took a pass on the Massachusetts Gaming Commission's roundtable on bettor limiting are scheduled to appear before the regulator today to present their Q1 reports. May get an MGC update or some q's re: limiting.https://t.co/JSQkePWYyF pic.twitter.com/gY4Gc8RkbS
— Geoff Zochodne (@GeoffZochodne) June 3, 2024
The comments from Maynard underscore the ongoing interest of the MGC in bettor limiting and the regulator's plans to continue to pursue answers from sportsbook operators in an open setting. The commission is currently attempting to gather more information about the industry practice and not adjust any rules or policies, although that is a possibility further down the road.
Massachusetts is also the first state to probe the practice of limiting so publicly, and the MGC’s efforts have attracted a lot of interest from bettors on social media. The subject can be controversial, as it provokes strong reactions from players online and hesitancy among operators to discuss it openly.
"Risk management, similar to trading (i.e., setting prices) is a core part of our business and our value proposition as a sportsbook, and it is critical for FanDuel to maintain confidentiality over our proprietary systems," a representative from the operator wrote to the MGC last month.
The best disinfectant
FanDuel and other operators sought to discuss limiting instead in a closed-door meeting with commissioners. The MGC, however, is required to do most of its business in public and sees limiting as a perfectly fine topic to talk about in plain sight.
While Massachusetts regulations allow sportsbook operators to limit players who try to skirt rules, the MGC’s concern lies more with bettors who are getting factored just because they win too much or too cleverly.
“There is a worry that if we have operators limiting patrons who are playing by the rules, that limitation will naturally incentivize those players to turn to the illegal market,” Maynard said during the roundtable on May 21.
