Scrutiny on Sports Betting Practices

By Jim Axelrod, Chief Correspondent

Jim Axelrod is the chief correspondent for CBS News, involved with “Eye on America,” “CBS Mornings,” and other programs.

October 26, 2026 / 8:41 AM EDT / CBS News

Recent attention on online sports betting companies has raised questions about their practices, particularly concerning big winners and frequent losers. A key practice under scrutiny is “limiting,” where betting platforms restrict the amount successful gamblers can wager. This practice has caught the eye of state lawmakers.

“They have to ensure that the house always wins,” said Brianne Doura-Schawohl, director of the Campaign for Fairer Gambling. “It’s not fair when advertising suggests we can all win.”

Last week, U.S. lawmakers addressed their concerns to major gambling platforms about the perks offered to bettors who frequently lose, including VIP statuses and exclusive benefits. These incentives might encourage consumers to keep betting despite their losses.

Winning bettors often face restrictions, with bets capped at minimal amounts such as under $20, and sometimes even below 50 cents. In 2023, a filing by DraftKings to the SEC outlined their stance on limiting:

“We restrict and manage betting limits based on individual customer profiles and risk level.”

Professional bettor Mike Manning shared his experience with Massachusetts’ launch of sports gambling in 2023. Manning, who employs analytical models instead of intuition, found his bets limited after consistent wins. He experienced substantial betting reductions on platforms such as DraftKings and BetMGM.

This practice drew the attention of the Massachusetts Gaming Commission in 2024, revealing that winning gamblers face reduced limits while losing ones have theirs increased. Gadoon Kyrollos, another professional bettor, highlighted:

“It’s that whole ‘ban or bankrupt’ model.”

Limited accounts are few, with only 0.64% of Massachusetts betting accounts facing restrictions. Attorney Matthew Litt explained that limiting is legal as long as it’s non-discriminatory regarding race or religion. Massachusetts became the first state to require companies to notify those affected by limiting.

DraftKings addresses such measures as internal risk management. However, bettors like Manning find the disparity unfair and predatory.

Meanwhile, another case involves Chris Swett, a former attorney from South Carolina, now awaiting sentencing. He gambled using stolen funds, using platforms like FanDuel. Engaged with daily fantasy sports, Swett was invited into a VIP program with lavish perks for high wagers. Despite losing over $1 million, successful incentives pushed him further into gambling debts.

FanDuel changed their operations to promote responsible gaming and prevent similar cases of problem gambling. This includes improved employee training and technology upgrades.

In light of these developments, affected individuals can find support with resources like the National Problem Gambling Helpline at 1-800-MY-RESET or Gamblers Anonymous at 1-855-222-5542.