Top Trending: Mass Regulators Confirm Predatory “Ban or Bankrupt” Model Practiced by Sportsbooks

Today the Massachusetts Gaming Commission has confirmed that operators do indeed practice the predatory “ban or bankrupt” model. A couple thoughts. Scroll down for all the top trending stories and latest headlines from the world of gambling, sports betting and crypto.

Sports bettor extraordinaire Spanky offered his take on what transpired Tuesday. 

"The .64% of all players being limited is very misleading. Your standard $5 and $10 will obviously never be limited. The sample size should only include those who consistently bet amounts close to the house limit. -The transparency suggestion on informing the player on why they were limited is futile as most players who are limited know exactly why they were limited

"This is equivalent to allowing a killer to get away with murder provided he tells you why he shot the person in the head in cold blood. The data has already proven that the injustice takes place. Let’s try to prevent the injustice instead of further identifying it. -While I applaud Chairman Maynard’s desire to have limited players have their limits eventually restored ( “removed from the penalty box”), every limited sports bettor will attest to the possibility of that ever happening in practice is near impossible."

Spanky went on to provide some real world examples: 

"A limited bettor is in either heaven or hell - the operators do not believe in purgatory. -I loved Commissioner O’Brien’s suggestion on establishing a range of highest bet (a) and lowest bet (b) on any given market where the ratio of a/b would require a maximum value.

"Assuming a/b is arbitrarily 25, If Joe Square can bet 50k on a game, then Johnny Sharp should be able to bet 2k on the same game. If you wanna bump Joe up to 100k, then all Johnnys would be able to bet 4k. If you wanna knock Johnny down to 1k, then you can’t take more than 25k from Joe.

"This would ensure Commissioner Skinner’s desire of establishing in her words a “fundamental fairness”, where any attempt to aggressively bankrupt a square player will need to be met with abating the banning of other players and any attempt on severely banning a sharp player will need to be met with bankrupting the square player a little slower.

"The days of one customer having a limit of 25 cents vs another player having a limit of 250,000 need to end. DK even alluded to this in their 2024 10-K annual report:

“We cannot assure you that all state legislation and regulators will always allow operators to execute limits at the individual customer level, or at their sole discretion.” I appreciate the Commission’s research and all who participated. Looking forward to seeing what’s next."

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(Poker) - DA Announces Felony Charges for Men Caught Cheating at Casino Poker - According to the DA’s press release, 52-year-old Vaagn Galustyan and 53-year-old Armin Martirosyan were arraigned on two counts of conspiracy to commit a crime on Tuesday, and they could face up to three years and eight months in prison if convicted on all charges. The two individuals are accused of cheating at poker tables to win more than $30,000 at Pala and Harrah’s casinos in San Diego County, California. 

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(Gambling News) - Georgia Considers Legalizing Gambling Amid Calls From Donald Trump Jr. - Georgia Rep. Alan Powell said at a Tuesday House Study Committee on Gaming, “Georgia would be an excellent place” to open casino resorts, which offer a diverse range of entertainment options. Powell indicated he was in favor of putting legalization on the ballot and that “the people need to have the choice to implement all forms” of gambling.

• Professor Brad R. Humphreys, a researcher on the economic impact of gambling, said that opening casinos would boost the economy through job creation. Humphreys noted that his own research shows that for every gambling job created, one or two hospitality jobs are also created.
• Donald Trump Jr. has joined the voices advocating for relaxed sports betting laws in the state. 
• A poll conducted in 2023 found that 85% of respondents supported allowing voters to decide on the establishment of casinos in the state.

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(Prediction Markets) - Kalshi Launches Parlays - Kalshi stealth-released its first customizable parlays Monday night. It did not make an official announcement about the new NFL offering despite the combo bets representing a milestone achievement for the U.S. prediction markets app. For months, Kalshi and its competitors have contemplated how to offer parlays that resemble what sportsbooks present customers. It has been a struggle, with the pre-made sports parlays created by exchange operators not moving the needle. But on Monday, the company began to let users combine pregame bets into one long-odds wager for the Miami Dolphins vs. New York Jets and Cincinnati Bengals vs. Denver Broncos games. Users could only stack parlay legs within the same contest—so no multi-game parlays—and the parlay option disappeared shortly before kickoff. (read more at Sportico) 

- Chris Costigan, Gambling911.com Publisher