No market is without some kind of limit. Used to minimize risk and keep sportsbooks profitable, companies set limits to stop the huge payouts they could be liable for if things take an unexpected turn.
Key takeaways
- Sportsbooks set limits to ensure the profitability of all markets.
- Limits can be raised or dropped depending on market movement.
- Successful players often face stricter limits, which vary by sportsbook.
Expert Tip: Don’t bet the maximum every time if you want to avoid lower limits being placed on your account.
Did You Know: Some sportsbooks are more likely to limit players than others. Two of the most welcoming sites for high stakes players are Pinnacle and Stake.
There’s always a limit to the amount of money sportsbooks will accept as a bet. Operators introduced limits to manage the risk level businesses decided was acceptable, and protect them from paying out unsustainable sums should things not go their way.
Sometimes, sportsbooks are upfront about the maximum bet they’ll accept, but in other cases these set limits can prove far more elusive. In this article, we’ll explain how and why books set limits, and what's really going on behind the scenes at your go-to sportsbook.
Sportsbook limits explained
Sportsbooks rarely state limits on popular markets upfront, but there’s always some limit. Most recreational bettors never get near these limits, though, which is why few know where operators draw the line on a given market.
Limits exist because without them, there'd be a real chance a company could face massive losses from unexpected results. In a worst-case scenario, the sportsbook couldn't to pay out at all.
The fact is, books need to maintain their mathematical edge to remain profitable. Even the best regarded sportsbooks couldn’t keep operating if they simply accepted bets at random and hoped for the best.
Set limits vary considerably by market. For niche sports, lesser-known leagues and specific player props, you’ll often see quite low limits (sometimes as low as $100), because these bets are inherently riskier. Popular markets such as the NFL, by contrast, often have $100,000 limits or more, a testament to their lower level of associated risk.
Why do sportsbooks set limits?
As we’ve discussed, the main reason sportsbooks set limits is risk management, but there are other reasons why these limits are essential to sportsbook operations. Let’s dive into the reasoning behind these lines and where they’re drawn.
1) To reduce losses from mispriced lines
Professional bettors are a thorn in any sportsbook's side. Given the chance, players who perfected the art of betting will exploit any mispriced lines they come across. If there are no limits attached to these lines, there’s a real chance pros could place huge bets and win enormous sums of money before a book adjusts its odds.
2) To test new markets before opening fully
In some cases, new markets open with quite low limits, just to test how bettors react. Operators use the first bets placed to shape the line before raising limits. This is a well-known strategy that lets sportsbooks check that odds are profitable before taking more substantial bets.
3) To avoid heavy losses related to timing
Timing is important to setting limits, too. The further away an event is, the lower the limit typically is. That’s simply because an event outcome that’s far off in the future is more difficult to predict than one that’s imminent. As an event approaches, sportsbooks raise limits, as they're better able to ascertain what’s most likely to happen.
4) To minimize risk attached to niche markets
Lesser-known sports often have lower limits attached, purely because books are far less likely to profit on niche markets and highly specific player props. For that reason, they can’t afford to lose huge sums on such markets either. They therefore lower limits to reduce losses, while still ensuring they can offer markets on niche events.
5) To cap losses from volatile in-play betting
In-play betting is enormously popular at the moment, but it can cause headaches for sportsbooks thanks to its inherent volatility. These markets move at a rapid pace, which leaves operators vulnerable if any lines are outdated and still available to bet. To reduce these chances, books tend to set strict limits on in-play betting.
6) For compliance and liability reasons
Operators use limits to reduce the impact of illegal activity, such as match-fixing. If they removed limits entirely, sportsbooks could face heavy losses as a result of such activity. For compliance and liability control purposes, books also often report particularly large bets to relevant authorities.
How sportsbook limits are set
Sportsbook limits might appear quite random at first glance, but they’re far from it. There’s a whole host of complex equations and algorithms at work behind the scenes. The results of these calculations then determine how companies set limits across all markets.
From a sportsbook’s perspective, limits are there to maximize profits and reduce risk. These operators therefore use mathematical models honed over the years to keep profits as high as possible, while also stopping potentially costly payouts.
Bettor profiling
Complex risk tools are used to profile bettors as they play. If you’ve ever noticed your limits seem lower across all markets, there’s a chance your sportsbook flagged you as a player more likely to win, and you've therefore been deemed a risk.
Most recreational players never see anything like this, because they’re likely to lose more than win over time. But if you do seem to win again and again, expect to be profiled as a potential professional bettor and have your limits reduced.
Market Monitoring
Sportsbooks never stop watching the bets coming in. Mathematical models these companies rely on always work away in the background, monitoring markets in real time.
If too much money flows in on one side of a bet, automated systems reduce limits and minimize risk before it gets too high. Similarly, if a market seems particularly quiet and few bettors are interested, limits are sometimes raised.
Which Canadian sportsbooks offer the highest limits?
Some sportsbooks are well-known for restricting successful players and reducing their limits. But others are far more welcoming to high-stakes players.
If you’re looking for a sportsbook less likely to limit your bets, Pinnacle and Stake are two of your best options.
Pinnacle caters to more experienced players and offers some of the highest limits around. Stake is another good one to explore if you’re looking for high limits and want to play with cryptocurrency.
For more information on these sportsbooks and other high stakes sites, take a look at this month’s online sportsbook recommendations.
