Limiting Winnings a Common Practice in Sports Betting Industry

A growing number of states and lawmakers are questioning a common practice in the sports betting industry known as "limiting". This tactic involves restricting or capping the amount that successful gamblers can win on a particular platform. According to Brianne Doura-Schawohl, director of the Campaign for Fairer Gambling, this practice is designed to ensure that the house always comes out on top.

The issue has come under scrutiny in Massachusetts, where sports betting was launched in 2023. Professional bettor Mike Manning, who uses a mathematical approach with analytical models to place his bets, reported winning consistently across multiple platforms. However, he soon found himself restricted by each platform, limiting the amount of money he could wager on individual bets.

On DraftKings, for example, Manning said that his maximum bet was capped at $25. This move has left some questioning whether sports betting companies are prioritizing profits over transparency and fairness.

BetMGM initially allowed a large bettor to wager between $1,000-$5,000 per game but eventually reduced his betting limit to $5.

The Massachusetts Gaming Commission took notice of this practice in 2024 and requested that gambling companies provide data on their betting limits.

An investigation by the regulator last year uncovered an interesting trend: gamblers who consistently win have their betting limits decreased, while those who frequently lose see their limits increased.

Betting companies have been found to be manipulating their systems to cap the winnings of consistent bettors while increasing the betting limits of those who frequently lose.

In one such case, a gambler from Ann Arbor, Michigan, was restricted by DraftKings to wager only 49 cents on the NBA Cup. This limitation is reportedly part of the company's enterprise risk control measures, which are aimed at preventing exploitation of errors or discrepancies in odds.

A former high-earning attorney turned convicted felon has also spoken out about his experiences with Daily Fantasy Sports. Chris Swett, awaiting sentencing for wire fraud and money laundering, admitted to using nearly all of the $2 million he stole from his law firm to fund his betting addiction on FanDuel.

Swett's betting habits had grown increasingly reckless by 2019, with him wagering between $5,000 to $10,000 per month on FanDuel. He claims that a company representative reached out to him via email, informing him that users who spent at least $25,000 monthly could be paired with a VIP host. This host would provide Swett with perks such as free tickets to sports events and entry into fantasy contests.

The VIP host's incentives had a profound impact on Swett, who felt like a high-stakes player after being taken to his first NFL game. Despite acknowledging that he was in over his head, the host continued to encourage him to place larger bets. This included offering Swett a 4% bonus on new wagers just two days later.

Swett's betting spree ultimately reached catastrophic levels, with him wagering $11 million and losing approximately $1 million over a two-year period. When he depleted his funds, he resorted to an elaborate scheme of defrauding his law firm and clients by submitting fake invoices for legal services.

The individual involved in the elaborate scheme of defrauding his law firm and clients has now faced severe consequences for his actions. He is facing a maximum sentence of 20 years in federal prison for his crimes. This punishment underscores the seriousness with which authorities view such financial misconduct.

FanDuel, an online sports betting platform, has issued a statement emphasizing its stance on responsible gaming practices. The company claims that millions of customers use its services as a form of entertainment, and it provides various tools to support informed and controlled play. These include deposit limits, timeouts, and self-exclusion options that can be easily accessed with just a few clicks.

FanDuel also maintains that its platform is not intended for professional bettors seeking to gain an edge or earn a living through their wagers. Instead, it aims to provide an entertainment experience for its users. In rare cases where individuals attempt to use the platform for income generation strategies, FanDuel employs tools to mitigate financial risks.

For those struggling with problem gambling, several resources are available to provide support and guidance. Individuals can contact Gamblers Anonymous by calling or texting their national hotline at 1-855-222-5542, or they may visit the organization's website for more information.

Alternatively, individuals seeking help can reach out to the National Council on Problem Gambling through a toll-free hotline at 1-800-MY-RESET.