Key Moments:
- The Massachusetts Gaming Commission has unanimously advanced a regulation requiring sportsbooks to notify and explain account limitations to bettors.
- During a September 30 meeting, the commission disclosed that only 0.64 percent of sportsbook accounts in Massachusetts had any betting limits imposed.
- The regulation faces a public comment period before a final commission vote determines its adoption.
Commission Moves Toward Greater Transparency in Sports Betting
The Massachusetts Gaming Commission has voted unanimously to progress a new rule that would require licensed sportsbooks to inform customers when their betting activity is restricted and provide explicit reasons for the limitations. If implemented, this would position Massachusetts as the first state in the country to formally mandate such transparency measures from sports betting operators.
Details of the Proposed Regulation
The proposed framework calls for operators to notify affected users and detail the purpose for each limitation placed on their account, including specifying which betting markets are impacted. The commission approved the proposal with a five to zero vote on December 18, setting the regulation on course for a formal public consultation period ahead of any final decision.
Deputy General Counsel Justin Stempeck presented two alternatives: a basic notification model and a more comprehensive notification with explanation. The commission unanimously favored the full-explanation approach, citing the need for meaningful communication with customers. “Notice alone would not give customers enough information,” commissioners agreed at the meeting.
Commission Chair Jordan Maynard emphasized Massachusetts’s pioneering status, stating, “the state is the first jurisdiction in the United States to formally address this issue.” Maynard also referenced operators’ claims that such restrictions are rarely applied, suggesting there should be no concern in explaining them on a case-by-case basis.
Commissioner Brad Hill remarked that a lack of explanation would cause player frustration, while Commissioner Paul Brodeur asserted that “full disclosure makes more sense and is more likely to satisfy customers.” Commissioners Nakisha Skinner and Eileen O’Brien indicated that even stronger measures might be considered in the future if necessary.
Background and Consultation Process
The regulatory move comes after more than 18 months of deliberation by the commission. In May 2024, only Bally’s participated in an operator roundtable, with a more extensive meeting following in September 2024. During these sessions, industry representatives defended limiting as a risk management tactic and asserted that a minimal share of customers are affected.
Subsequent data gathering from the state’s seven licensed sportsbooks revealed, as presented at a September 30 meeting, that just 0.64 percent of active accounts in Massachusetts had experienced any form of betting limitation.
| Date | Milestone | Detail |
|---|---|---|
| May 2024 | Initial Operator Roundtable | Only Bally’s attended |
| September 2024 | Full Operator Meeting | More sportsbooks participated; limiting discussed as risk management |
| September 30 | Disclosure of Limiting Data | 0.64% of accounts impacted by limits |
| December 18 | Commission Vote | Regulation advanced 5-0 for public comment |
Next Steps and Industry Impact
The regulation is now subject to public comment, allowing operators, industry associations, and residents to share feedback. After reviewing submissions and potential revisions, the commission will hold a final vote to determine whether to enact the rule. Should it pass, it will apply to all state-licensed sportsbooks.
Elsewhere, other jurisdictions are examining similar policies. While regulators in Wyoming determined intervention was unnecessary due to the rarity of the issue, New York legislators are considering a bill that would prevent successful bettors from being limited without written justification, with certain exceptions for suspicious or problematic behavior.
Adoption of the Massachusetts rule could establish a precedent in transparency standards for the regulated sports betting industry in the United States.
- Author
Daniel Williams
