Do Online Sportsbooks Ban Winners?
Sportsbook apps and websites often ban or restrict winning customers, particularly those who win more often than they lose over an extended period of time or display betting patterns that the sportsbook deems unprofitable for its bottom line.
Many sports bettors who had been on a winning streak have reported that online sportsbooks limited some of their bets to just a few dollars. No warning or notification is provided ahead of the restriction. For an outright customer ban, there is usually communication from the sportsbook.
While it's within a sportsbook's legal rights to ban or restrict bettors, such practices are highly controversial. It’s among the reasons you shouldn’t bet on sports. It’s virtually impossible to use sports betting as a reliable source of income.
Some sports betting jurisdictions and regulatory bodies are beginning to scrutinize these practices for fairness and consumer protection.
The vast majority of an online sportsbook’s revenue comes from people suffering from a gambling problem, according to a recent study. So, if you’re someone who doesn’t have a gambling problem, you’re much more likely to face restrictions.
Online sportsbooks are predatory businesses.
Why Sports Betting Platforms Limit Some Customers
Sportsbooks ban or restrict customers who have been successful. Meanwhile, the platforms allow people with gambling addiction to continue wagering until vast harm has been done.
Here are the reasons sportsbooks ban or restrict players who exhibit some betting competency:
Risk Management: Sportsbooks aim to balance the action on either side of a bet to guarantee a profit through the vig (the commission charged on bets). Bettors who consistently win upset this balance, making them less profitable or even a liability to the sportsbook.
Professional or "Sharp" Bettors: Bettors who use sophisticated models, insider knowledge, or extensive research to place highly informed bets can be particularly successful. Sportsbooks might limit or ban these individuals to protect their odds and profitability.
Arbitrage and Exploiting a Bonus: Bettors who engage in arbitrage (exploiting odds differences between sportsbooks to guarantee a profit) or find an edge with promotional offers may also face restrictions or bans. These practices don't contribute to the sportsbook's bottom line and are often against the terms of service.
Influence on Odds: Successful bettors, especially in smaller or niche markets, can significantly influence odds and market movements. To maintain control over their lines, sportsbooks may restrict or ban these bettors.
Because sportsbooks pay taxes to states, regulators have turned a blind eye to this unsavory business practice. The more money a sportsbook earns, the more tax revenue a state receives.
However, the practice of banning and limiting winners has become so egregious that some states are discussing ways to curtail the predatory activity.
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