Betting Firms Restrict Winning Gamblers to Cents While Rewarding Losses

Sports betting platforms are applying strict wager caps to their most successful customers, a practice that stands in stark contrast to the generous rewards offered to high-volume losers. This disparity has drawn the attention of state regulators and federal lawmakers who are questioning the fairness of the industry's risk management tactics.

The strategy, known as limiting, involves reducing the maximum bet size for gamblers who are consistently winning. In some cases, the cap is lowered to under $20 or even 49 cents, effectively preventing professional bettors from placing large wagers. Meanwhile, bettors who are losing money often receive increased limits and exclusive perks, such as tickets to major sporting events and celebrity appearances, to encourage continued play.

A group of U.S. lawmakers recently wrote to major gambling operators expressing concern over the exploitation of vulnerable bettors. The letter argued that the offering of perks, including Super Bowl tickets and access to exclusive events, distracts bettors from their financial losses and prompts them to gamble when they might otherwise stop.

The Massachusetts Gaming Commission investigated the practice after the state launched sports gambling in 2023. In 2025, the regulator found a clear trend: winning gamblers had their betting limits decreased, while losing gamblers saw their limits increase. The commission determined that only 0.64% of betting accounts in Massachusetts were restricted during the period of its inquiry.

Professional better Mike Manning, who uses analytical models to place wagers, reported being limited to $25 per bet on DraftKings and as low as $5 on BetMGM. Another bettor, Michael Trevithick of Ann Arbor, Michigan, showed a ticket where DraftKings limited his wager on the NBA Cup to 49 cents. Manning described the disparity as predatory, noting that the industry exploits losing bettors while showing successful ones the door.

In a 2023 filing with the Securities and Exchange Commission, DraftKings stated that it restricts betting limits based on individual customer profiles and risk levels. A company spokesperson said these limits apply to less than 0.15% of accounts and are generally a response to activity that appears designed to exploit errors in odds. FanDuel, which has also faced scrutiny, stated that it uses these tools to protect its financial risk and has made changes to its VIP program to identify problem gambling.

Massachusetts became the first state to require gambling companies to notify restricted gamblers and explain the reason for the limitation. DraftKings told Manning the action was for internal risk management purposes, while FanDuel cited an assessment of his overall wagering patterns and their impact on the company's long-term risk position.