All seven Massachusetts sportsbooks provided the Gaming Commission with data on player limitations as requested. Massachusetts is the first state to run an investigation into player limits.
“We’ve gathered data and will continue to gather data. We look forward to learning and putting that learning into action. We’re proud to be the first jurisdiction in the U.S. to openly discuss limiting with the operators and we’re excited to add that interplay with the VIP programs. We’ll continue to learn on this matter,” Massachusetts Gaming Commission (MGC) Chair Jordan Maynard said in a meeting on Thursday.
The volume of data will require a data analyst before any conclusions can be made.
Massachusetts sportsbooks claim few are limited
Last year in September, the MGC held a roundtable with the sports betting operators who claimed the number of limited users is very small. The companies also stressed they do not place limits on winning players.
Kenneth Fuchs of Caesars said, “We are not banning customers for beating us.”
These sentiments were echoed by Fanatics, represented by Alex Smith. “The notion that if you win, you’ll be banned is not statistically correct,” Smith said. He claimed many players that had been limited were net losing.
Jeremy Kolman of BetMGM said it is more about the behavior of punters rather than their wins. Talking about what factors they consider when placing limits on players, Kolman said “It’s worth noting that these factors focus on behaviors and betting patterns of patrons, they’re not merely result driven.”
The data turned over to the MGC should reveal if what they say and do are the same.
Players turn to alternative means of betting
Player limitations can be one factor that drives users to forego the licensed Massachusetts sportsbooks and bet with offshore operators. Crypto sports betting has also gained popularity as it offers anonymity and better odds.
Prediction markets such as Kalshi, Crypto.com, and Robinhood also attract players who cannot get their bets on at licensed sportsbooks. The MGC is investigating these companies along with a host of other states.
These alternative betting methods are a danger to states as they do not pay tax. In January this year, Massachusetts sportsbooks set a record for revenue at $96 million. This contributes a substantial amount to the state’s coffers with the tax rate set at 20%.
Growth of unlicensed sportsbooks
Despite sportsbooks posting record numbers, unlicensed operators are generating even more revenue. A report this week showed that unlicensed betting far exceeds licensed betting, and the gap is growing.
With more bonuses, more products, and fewer rules to follow, many bettors prefer betting offshore.
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