Insights on Sports Betting Practices
It seems that sports betting companies tend to focus more on customers who often lose money, while they impose strict restrictions on those who are successful. According to a report from CBS News, these companies reward their biggest losers with VIP perks like access to sporting events and signed memorabilia, but they simultaneously limit winners to keep them from benefiting too much from their wins.
Professional gambler Mike Manning shared his experience, saying, “You’re exploiting the losing bettor, you’re taking advantage of them, and guys like me get shown the door.” This sentiment echoes a troubling trend in the industry.
Since the Supreme Court’s 2018 decision to legalize sports betting, American bettors have wagered over $700 billion. An astonishing 86% of the total revenue comes from just 5% of the bettors, as highlighted by the advocacy group QuitGamble.
How these online sportsbooks handle their customers varies significantly depending on whether they see wins or losses. Surprisingly, major players like FanDuel, DraftKings, and BetMGM didn’t respond to inquiries about their policies.
Manning, who uses sophisticated analytical methods for his bets, found that winning consistently led to immediate limitations on his betting amounts. For instance, DraftKings reduced his betting limit to just $25, while BetMGM allowed him to bet only $5.
In a similar vein, professional gambler Isaac Rose-Berman reported struggling to place bets over $15 on prop bets through Fantatics.
On the flip side, sportsbooks actively court their biggest losers. A recovering gambling addict, Joe Early, recounted that despite losing a substantial amount—over $100,000 on DraftKings—he was granted opportunities to play basketball on an NBA court with Celtics players simply because he was betting heavily.
In another example, former attorney Chris Swett illegally appropriated $2 million from his law firm to fund his gambling habits. Swett lost more than $1 million on FanDuel in two years, but as his losses accumulated, FanDuel offered him VIP perks, like tickets to NFL games, when he placed sizeable bets.
Sports betting is rapidly becoming one of America’s costliest pastimes. In 2025, Americans placed a staggering $166 billion in sports wagers, a sum that exceeds the total revenue generated by the movie, book, music, concert, and museum industries combined. Moreover, the fast-growing prediction market brought in an additional $55 billion by July of that year. Out of this, $19 billion was linked to sports contracts, yet these markets are facing scrutiny regarding their licensing status, particularly as legal challenges loom with upcoming midterm elections.
