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Massachusetts sportsbooks skip MGC meeting on betting limits
None of the sportsbooks attended the Massachusetts Gaming Commission‘s meeting to discuss how they determine betting limits, citing concerns about disclosing sensitive risk management practices in public.
The MGC is looking into how sportsbooks, or organizations that offer sports betting, set the maximum amount that a customer may wager. The MGC convened a conference to address this matter, since they had received multiple complaints from bettors who were unhappy with the unexpected limitation on their capacity to make larger wagers. With the sportsbooks given ample notice and the opportunity to participate, the MGC set up a virtual roundtable session for Tuesday in order to address this issue. All of the invited sportsbooks, nevertheless, refused to participate.
Jordan Maynard, the MGC’s Interim Director, announced during the meeting that these sportsbooks will not be present to discuss how they determine betting limits.
Maynard brought up a key point: the MGC believed that sportsbooks only restricted or disqualified gamblers who broke certain regulations. They did discover, though, that sportsbooks can also impose restrictions on bettors who consistently win. The MGC was unaware that this was permitted under the current legislation. Maynard stated:
“I want to clear the air that we are required by law to do our job in an open forum in Massachusetts. At times, it can be uncomfortable to have these conversations in public. But transparency is key to the integrity of the [gaming] industry in Massachusetts.”
The purpose of the conversation was for the MGC to learn firsthand from the sportsbooks why they set these restrictions and how they determine who is subject to them. With this information, the MGC could potentially better understand and regulate these activities.
Every sportsbook replied to the roundtable invitation sent by the MGC by voicing similar concerns about sharing confidential firm information in public. In order to safeguard their confidential risk management strategies, the sportsbooks stated that they would rather talk about these delicate subjects in private, closed-door meetings.
Cory Fox, vice president of product and new market compliance at FanDuel, stated:
“Risk management is a core part of our business and our value proposition as a sportsbook that’s similar to setting prices — or odds.”
A representative from DraftKings and Lisa Rankin of Caesars Sportsbook both expressed identical concerns about disclosing corporate secrets in a public setting, arguing that doing so would jeopardize their ability to maintain a competitive edge and operate the business.
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