Licensed sportsbooks in Massachusetts may soon face new disclosure obligations under a proposed regulation requiring direct notification and explanation to bettors whose wagering activity has been limited.
The Massachusetts Gaming Commission voted 5-0 on Thursday to advance a proposal that would require legal sports betting operators to notify users when limits are placed on their betting activity and explain the reasons for those actions. The measure was presented to commissioners by Deputy General Counsel Justin Stempeck, who outlined two alternative approaches for regulating sportsbook limiting practices.
Commissioners selected the more detailed option, which would require operators not only to inform bettors that limits have been applied but also to specify why the limits occurred and identify the betting markets affected. If approved and enacted, the rule would apply to all licensed sportsbooks operating in the state.
“We are the first jurisdiction to take up this issue,” said Chair Jordan Maynard. “This was not an easy topic to take on, but it’s a good thing for the citizens and patrons of the Commonwealth.”
The proposed regulation will be released for public comment, allowing sportsbooks, other stakeholders, and members of the public to submit feedback. After reviewing the comments and making any revisions deemed appropriate, the commission would be required to hold a formal vote before the rule could be adopted.
Stempeck told commissioners that the two options differed primarily in scope. The first would have required notice only, without further detail. The option selected by the commission mandates additional disclosure regarding the reasons for limiting decisions.
During the meeting, several commissioners discussed how sportsbooks apply limits and whether operators could comply with the proposed requirements.
“The operators keep telling me they’re not limiting many people,” Maynard said. “If they’re not limiting many people, they should be able to tell people why they’re limiting them.”
Commissioner Brad Hill supported the requirement for explanations. “I’ve always been of the feeling that at, the very least, we need to let the folks know why they’re being limited,” Hill said. “I don’t see why we wouldn’t take that extra step if we’re going to tell you that you’re being limited. And I don’t really think that this is a hard thing to do for the operators.”
Commissioner Paul Brodeur questioned whether notice alone would address bettor concerns. “Just providing notice is going to beg the question, right?” he said. “I’m not sure that is going to satisfy any patron. Full disclosure and transparency, providing that additional information, makes sense.”
Commissioners Nakisha Skinner and Eileen O’Brien said that even the selected option may not fully address the issue, while Maynard raised the possibility of considering additional measures in the future.
The proposal follows more than 18 months of commission review focused on sportsbook limiting. In May 2024, regulators invited licensed operators to participate in a roundtable discussion, though Bally’s was the only company to attend. A broader meeting took place in September 2024, when representatives from several sportsbooks told regulators that limiting is applied to a small share of customers and is primarily used to manage risk and liability exposure.
The commission later requested data from its seven licensed sports wagering operators and presented its findings at a meeting on September 30. The analysis showed that 0.64% of all sports betting accounts in Massachusetts had limits imposed on them.
Massachusetts is not the only state examining sportsbook limiting, though approaches vary. In Wyoming, a report presented by the Wyoming Gaming Commission in May found that limiting occurs infrequently and does not warrant regulatory intervention.
In New York, the issue is being addressed through proposed legislation. Democratic Assemblymember Alex Bores introduced A9125, which would prohibit sportsbooks from limiting or banning authorized bettors based on their success rate. The bill would also require written notice explaining the reasons for and scope of any limits, with exemptions for activity considered suspicious or indicative of problem gambling.
Original article: https://www.yogonet.com/international/news/2025/12/19/116902-massachusetts-advances-sportsbook-disclosure-rule-on-bettor-limits
