New York Gaming Commission Advances AI Restrictions on Sports Betting Promotions and At-Risk Bettor Identification Rules
The NYSGC unanimously advanced a revised proposal restricting how mobile sports betting licensees use AI to provide promotions and wagering advice. The panel also advanced a proposal that would require licensees to identify patrons who may be at risk for problem gambling behaviors. O’Dwyer said the industry must solve this problem or the commission will.
SCCG Take — Operators face mounting pressure to collaborate on responsible gaming data or accept regulator-dictated solutions. The rules signal tighter limits on promotional innovation in high-tax jurisdictions.
New York gaming regulators have advanced two proposals aimed at tightening controls on mobile sports betting. The New York State Gaming Commission unanimously moved forward with restrictions on artificial intelligence and algorithmic tools for personalized promotions, alongside requirements for operators to identify and contact at-risk patrons. These steps are part of Governor Kathy Hochul’s State of the State 2026 program announced in March and draw from a similar New Jersey framework that stops short of an outright ban.
Limits on AI, Algorithmic Profiling and Personalized Wagering Advice
The revised proposal bars sportsbooks, affiliates and vendors from using AI, automated decision systems, algorithmic profiling, machine learning or generative AI to analyze customer data. Prohibited activities include personalizing promotions, bonuses, odds, betting limits, messages or product recommendations. Operators also cannot suggest specific wagers, wager types or amounts, nor deploy promotions intended to increase spending, revenue or engagement.
The restrictions do not apply where customers affirmatively consent. Pari-mutuel horse racing apps remain exempt if they require an opt-in before suggesting wagers. The commission has licensed nine mobile sports betting operators: Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, Resorts World Bet, Rush Street Interactive and theScore Bet. Gross gaming revenue from mobile wagering is taxed at 51%. As reported by CDC Gaming, the revised AI rules will undergo further public comment before returning for discussion and a possible vote.
Data Sharing and Engagement Requirements for At-Risk Bettors
A parallel proposal requires licensees to identify patrons showing signs of problem gambling and designate a specific person to contact them about responsible gaming resources. Brian O’Dwyer, NYSGC Chairman, noted the risk that a restricted customer could simply shift to another licensed operator. “The mobile sports betting industry have long maintained that they considered integration of responsible gaming practices a significant element of their business,” O’Dwyer said.
O’Dwyer reminded operators that the proposals offer an opportunity to demonstrate commitment by sharing necessary data. “The industry is on notice by me and this commission that they need to solve this problem,” O’Dwyer said. “It’s a problem that this commission will require to be addressed and if the industry does not address it than we will address it, and they may not like it or the solution we come up with.”
Joe Maloney, president of the Sports Betting Alliance, said his group will continue working with regulators. “Since 2022, New Yorkers aged 21plus have been able to place legal wagers in a trusted, regulated market with licensed operators held to account by regulators that ensure commitments to consumer protection, responsibility, and integrity,” Maloney said in a statement. Regulated operators now generate over $1 billion annually in tax revenue. No date has been set for a final vote on either proposal.
Reporting: CDC Gaming
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Gaming, betting and prediction markets — the desk’s read, every weekday.
Subscribe →