A bill recently filed in New York would end sports betting operators’ practice of limiting winning customers.
Key Takeaways
- A New York legislator wants sportsbooks to be prohibited from limiting bettors because of “financial benefit” from wagering.
- The bill calls for operators to inform a bettor within 24 hours of why they were limited and for how long.
- Massachusetts is another legal sports betting state that’s looking into limiting successful bettors.
A9125, introduced by Assemblymember Alex Bores, was referred to the Racing and Wagering Committee late last week. The bill calls for sports betting operators to be “prohibited from limiting the size or frequency of deposits or wagers” just because a customer “obtains financial benefit” from wagering.
Sportsbooks in the most lucrative sports betting U.S. market would only be allowed to restrict or ban an “authorized” bettor if its for suspicious activity or problem gambling. Even then, the New York sports betting operator would be required to provide electronic written notice to the bettor within 24 hours that includes why the customer was limited and for how long. The customer would also be provided with a gambling hotline number and shown concern for problem gambling.
New York’s next legislative session begins in January 2026, so A9125 will carry over to next year and possibly be put up for discussion.
Bay State investigation
The Empire State isn’t the only legal sports betting jurisdiction taking action against sportsbooks limiting bettors for winning. With customers in other states complaining about the limiting practice because they won, this could continue to be a rising issue, like in the Bay State.
The Massachusetts Gaming Commission (MGC) has been investigating the matter for several months and discussed it Tuesday. The MGC’s staff released data that showed 0.64% of bettors in the Bay State were limited as of last December.
Of the group of limited wagering customers, 57.6% were cut to 1% to 24% of the amounts given to most users. MGC chair Jordan Maynard said that sports betting operators claim limits are necessary to protect them against customers who take advantage of the legal market, but he also said many of the limited bettors face restrictions with “little to no justification or notification.”
The MGC continues to investigate the practice. Meanwhile, no data was provided yet in Bores’ New York bill, but more could be revealed when the legislation is discussed by the Assembly's gaming committee.
Going the other way
A bill was introduced in April that would’ve gone the other way in New York. Assemblymember Robert Carroll’s bill wanted to restrict bettors with a $5,000 wagering cap every 24 hours, and a deposit-per-day limit of five, as well as limiting advertisements.
The legislation didn’t make it out of the Racing and Wagering Commission during the last legislative session. Opponents of the bill were concerned that high-stakes bettors would take their business to neighboring states and hurt New York’s tax revenue.
