TLDR
- Massachusetts became the first state to require sportsbooks to notify customers when they are being limited
- Sharp bettors have largely received notices telling them their winning strategies are unwanted
- FanDuel and BetMGM cited “pricing inefficiencies” and “unusual markets” as reasons for limiting accounts
- Some sportsbooks are closing accounts entirely instead of following the notification rule
- Prediction markets are growing as an alternative, putting pressure on traditional sportsbook operators
Massachusetts has become the first state in the US to require sportsbooks to tell customers why their betting accounts are being limited. The rule took effect on June 1, 2026, and was put together with input from the American Bettors’ Voice, a player advocacy group.
The regulation was designed to bring transparency to a practice that has long frustrated bettors. For years, sportsbooks have quietly reduced how much skilled bettors can wager, often without any explanation.
Since the rule went live, operators have been sending notices to affected customers. The messages have not been warmly received.
FanDuel told bettors that exploiting “pricing inefficiencies and/or market timing” is not acceptable. BetMGM said playing “low-volume or unusual markets” can result in being backed off.
Sigma Squirrel, a board member of American Bettors’ Voice who helped shape the regulation, said the pattern is clear. Bettors who are good at finding mispriced odds are the ones being limited most often.
He compared the situation to online shopping. If a retailer lists a product at a discounted price and a customer buys it, the retailer cannot simply refuse the sale after the fact. He argues sportsbooks are doing exactly that.
Accounts Being Closed Instead
Not all operators are following the rule as written. Reports suggest some sportsbooks are closing accounts outright rather than sending a limitation notice.
The Massachusetts Gaming Commission said account closures were never part of the regulation. A spokesperson confirmed the rule only covers the practice of limiting, not closing accounts.
Sigma Squirrel said the commission will be watching how operators behave over the coming months. He expects the commission to act if closures are being used to get around the rule.
The MGC will not revisit the regulation at its next three scheduled meetings, on June 18, July 1, and July 16. However, MGC Chair Jordan Maynard said the commission will continue to review the policy.
The Business Risk for Operators
The current setup creates a problem for operators beyond just regulation. Sportsbooks are limiting their best customers while encouraging losing bettors to keep spending.
Sigma Squirrel said this is not a sustainable model. Skilled bettors bring volume and liquidity. Recreational bettors eventually run out of money.
DraftKings CEO Jason Robins has said publicly that winning customers are not the type of customers the company wants. Sigma Squirrel said that position carries real business risk as prediction markets continue to grow.
Prediction markets are attracting bettors who have been pushed out by traditional sportsbooks. If that trend continues, overall handle for sportsbooks could plateau or fall.
The Massachusetts Gaming Commission has been praised for taking the first step. Player advocates say they plan to push for similar rules in other states.
