49 Cents: The Bet Limit Imposed on a Winning Gambler

DraftKings allowed one Michigan bettor to wager a maximum of 49 cents on the NBA Cup, a restriction that highlights the growing scrutiny of how sports betting firms manage their most successful customers. While companies have long been criticized for rewarding heavy losers with perks, state regulators are now focusing on the practice of limiting winning gamblers.

U.S. lawmakers sent a letter to major gambling platforms last week expressing concern over the treatment of vulnerable bettors. The group noted that perks such as exclusive event access and celebrity videos distract bettors from financial losses and encourage continued play. In contrast, big winners often face betting caps under $20, sometimes under 50 cents, which effectively cuts them off from placing large wagers.

Mike Manning, a professional better who uses mathematical models, experienced these limits firsthand after Massachusetts launched sports gambling in 2023. Manning said he was winning on nearly every app before platforms began restricting his account. On BetMGM, his limits dropped from $1,000 to $5 per game. On DraftKings, he was limited to $25 per bet.

The Massachusetts Gaming Commission investigated the practice in 2024 and found a trend where winning gamblers had their limits decreased while losing gamblers had their limits increased. The commission found that 0.64% of betting accounts in the state had been restricted. Manning described the disparity as predatory, noting that the system exploits losing bettors while showing winners the door.

FanDuel has also faced scrutiny regarding its VIP program. Chris Swett, a former South Carolina attorney, pleaded guilty to four counts of wire fraud and four counts of money laundering. Swett said he stole about $2 million from his law firm to fund a gambling addiction on the platform. He was paired with a VIP host who provided free tickets and bonuses to keep him betting. Swett wagered $11 million over two years and lost about $1 million.

DraftKings told Manning the action was taken for internal risk management purposes. A spokesperson for the company said customer-specific wagering limits apply to less than 0.15% of accounts as an enterprise risk control. The company stated these decisions are based on customer behavior, regardless of whether a customer is winning or losing. BetMGM declined to comment on the matter.

Matthew Litt, a New Jersey attorney who handles gambling cases, says limiting is legal as long as companies do not discriminate based on protected characteristics. Massachusetts became the first state to require gambling companies to notify limited gamblers and explain the reasoning. FanDuel wrote to Manning that he was restricted based on an assessment of his wagering patterns and their impact on the company's long-term risk position.