In sports betting contexts, you're often just betting against other players, I believe. If they're anything like prediction markets, the exchange isn't going to care how successful you are, as long as you're betting.
These things are so unfathomably antisocial that I earnestly believe every single politician who advances them should be (journalistically) investigated as extensively as is legally possible.
What kind of markets is this referring to?
Polymarket still charges 0 fees. While Kalshi's fees+spread can approach or even exceed traditional sportsbooks on some markets, neither of them have any interest in banning winning players, as they don't take a side on any bet and directly benefit from more betting activity. Kalshi also pays interest on bets, which can add up on longer term positions.
Betfair has operated with a similar model for decades in the UK and elsewhere.