Online betting companies lavish losers with rewards while capping winners

Key Points:

• Sports betting companies face scrutiny for "limiting" practices, where they cap bets of successful gamblers to reduce payouts, while offering perks to frequent losers to encourage continued betting.
• Massachusetts regulators found that winning bettors often have their limits decreased, sometimes to as low as 50 cents per bet, while losing bettors receive increased limits and VIP incentives, raising fairness concerns.
• The practice is legal if not discriminatory, but Massachusetts requires companies to notify customers when limits are imposed and explain reasons, with companies citing risk management and protection against exploitation of odds discrepancies.
• A former lawyer, Chris Swett, highlighted how VIP programs incentivize high losses by offering perks and bonuses, which contributed to his gambling addiction and criminal fraud to fund betting, prompting companies like FanDuel to enhance responsible gaming measures.
• Sports betting platforms defend limiting as necessary for financial risk control and emphasize tools for responsible gambling, but critics argue the system exploits vulnerable bettors and undermines the fairness promised by pervasive advertising.