Key Moments:
- The New York ‘Fair Play Act’ was introduced by Assemblymember Alex Bores to prevent sportsbooks from limiting or banning winning bettors.
- Exceptions in the proposal address responsible gambling practices and integrity concerns.
- Major sportsbook operators have voiced opposition to increased restrictions on customer limitations.
Introduction of the Fair Play Act
New York legislators are taking aim at betting site practices with the recent introduction of the ‘Fair Play Act,’ a proposal designed to better protect mobile sports bettors from being penalized for winning. Assemblymember Alex Bores put forward the measure on September 26. The bill, currently being reviewed by the Assembly Committee on Racing and Wagering, would make it unlawful for sportsbooks to restrict or ban customers solely for winning often or placing many bets.
If enacted, New York would become the first state in the country to offer this level of protection to bettors, though similar discussions have occurred elsewhere.
Exceptions Address Responsible Gaming and Integrity
While the proposed law would halt sportsbooks from limiting bet sizes based solely on a player’s success or volume, it includes clear exceptions. Sportsbooks would continue to be permitted to enact limitations related to responsible gambling initiatives or to maintain integrity within the betting ecosystem.
Comparative Actions in Massachusetts and Wyoming
Other states, including Massachusetts and Wyoming, are examining comparable issues. The Massachusetts Gaming Commission (MGC) has undertaken thorough research, holding hearings with sportsbook operators to assess consumer protection measures. The MGC previously asked operators for data on how frequently betting limits are applied, with findings released recently.
“Analysis confirmed that players who consistently beat the closing line are likely to have a lower stake factor, meaning have their limit lowered, and players who do not consistently beat the closing line are more likely to have a higher stake factor, meaning have their limit raised,” Carrie Torrisi, head of the MGC’s Sports Wagering Division, told the commission.
The Massachusetts findings indicated that slightly more than half a percent of gamblers have faced limits, with the degree of restriction differing greatly. MGC Chair Jordan Maynard noted this supports bettor complaints, while also recognizing the operational need for sportsbooks to manage risk. The MGC has indicated a need for enhanced transparency regarding the reasons for limiting players, though it has not taken formal action.
Wyoming’s Gaming Commission has also investigated the matter. Their findings highlight that less than 1% of accounts have been limited, and less than 10% of these restrictions resulted from exploitation of errors.
“Given all the data we’ve collected, staff does not see a problem in Wyoming with the limiting of sports wagering,” a report found.
| State | % of Accounts Limited | % Due to Exploiting Errors |
|---|---|---|
| Massachusetts | Just over 0.5% | Not specified |
| Wyoming | Less than 1% | Less than 10% |
Industry Opposition and Financial Context
Leading sportsbook companies are preparing to challenge potential new rules in New York that could affect their profitability. These firms had previously objected to the state’s high 51% tax rate during the legalization process. Now, amid talks about new constraints on limiting bettors, operators like DraftKings and Penn Entertainment have raised concerns about how such policies might impact their operations.
DraftKings said in its fiscal year 2023 report: “It is customary for sports betting operators to manage customer betting limits at the individual level to manage enterprise risk levels.”
“We believe this practice is beneficial overall, because if it were not possible, betting options would be restricted globally and limits available to customers would be much lower to insulate overall risk due to the existence of a small segment of highly sophisticated syndicates and algorithmic bettors, or bettors looking to take advantage of errors and omissions on our platforms.”
Operators have maintained that managing betting limits is essential to address the influence of sharp bettors on profit margins. Nonetheless, New York’s sports betting industry has shown robust financial performance since its launch in 2019, tallying over $74.9 billion in wagers and, following the launch of mobile platforms in January 2022, generating more than $3.4 billion in tax revenue as well as $6.7 billion in operator revenue.
- Author
Daniel Williams
