Betting companies cap winners while lavishing losers with rewards

Online sports betting companies are facing criticism for capping winners' bets and lavishing rewards on frequent losers. States and lawmakers have questioned the practice of "limiting," where gamblers who are losing large sums have their betting limits increased while winners see their bets capped, often at minimal amounts. Betting platforms argue they follow industry practices to manage risk, but critics say it is unfair and exploits vulnerable bettors.

A letter from U.S. lawmakers to major gambling platforms highlighted concerns about exploiting vulnerable bettors with perks like access to exclusive events. Large winners sometimes get even less, with bets capped at under $20 or even 50 cents. One professional bettor, Mike Manning, lost his ability to bet large amounts on multiple apps, describing the practice as predatory.

The Massachusetts Gaming Commission found that 0.64% of betting accounts were limited, with winning gamblers often seeing their limits decreased while losers had theirs increased. Limiting is legal as long as companies don't discriminate against customers based on protected characteristics, but regulators require notification to gamblers who have been limited and explanation of why.

Some bettors, like Michael Trevithick, had their limits capped to under $1, resulting in significant losses. A former lawyer turned gambling addict, Chris Swett, was incentivized by a FanDuel employee to wager large amounts, eventually leading to fraud charges. FanDuel and DraftKings defended their practices as enterprise risk control measures, based on customer behaviors, regardless of whether they are winning or losing.