Betting platforms curb big winners while rewarding frequent losers, prompting regulator scrutiny

Increasing scrutiny of online sports betting has revealed a dual strategy: platforms limit the betting size of high-winning customers while providing extravagant perks to those who lose large sums. Lawmakers recently wrote to major operators, warning that rewards such as exclusive events and Super Bowl tickets may distract vulnerable bettors from financial harm. Companies, including DraftKings and BetMGM, explain the practice as standard risk management, with limits sometimes dropping to under a dollar per wager.

In Massachusetts, regulators required disclosures and found that only a tiny share of accounts—under 1%—were limited, prompting the state to mandate notification of affected users. Professional bettors like Mike Manning and Gadoon Kyrollos report being barred from larger bets, calling the disparity unfair. Meanwhile, FanDuel’s VIP program was tied to the case of former attorney Chris Swett, who lost millions and was later convicted of wire fraud and money laundering. The industry argues that responsible-gaming tools are available, but critics say the system incentivizes continued loss.