The New York Gaming Commission is proposing new requirements for sportsbooks to identify customers who may be at risk of problem gambling, including staff oversight, limits on marketing and reviews triggered by betting activity. Its chair warned operators that the state would impose further rules if the industry does not address the issue itself.
“It is a problem that this commission will require to be addressed,” Gaming Commission Chair Brian O’Dwyer said. If operators failed to act, he said, the commission would step in with a solution they “may not like.” He said the industry was being given the opportunity to develop its own response.
Proposed safeguards and review thresholds
Under the proposal, each sportsbook would have to appoint a “responsible gambling lead” to identify at-risk users and help connect them with resources for gambling addiction treatment. That employee would also be responsible for ensuring those customers did not receive gambling promotions or marketing materials.
The commission is also considering a ban on using artificial intelligence or machine learning to select, customize, time or deliver promotions, bonuses, odds, limits, messages or product recommendations to certain users. The proposal would bar suggestions for wagers, wager types or wager amounts, as well as promotions intended to increase spending, engagement or revenue.
Sportsbooks would need to flag customers for a “due diligence review” if they deposited more than $10,000 in 24 hours, deposited $100,000 over 90 days, or placed bets totaling more than $1 million over 90 days. Apps would also flag customers who ended at least two gambling sessions in the same week with less than $1 remaining.
Other proposed triggers include increasing total wagers compared with the previous session and making deposits from two different sources in one day.
Pressure for tighter oversight
The proposals follow a broader push for gambling safeguards by Gov. Kathy Hochul (D). In January, she outlined measures intended to curb underage gambling, including the use of biometric data. State regulators added rules in April aimed at preventing gambling addiction and promoting responsible gaming. New York banned sweepstakes gaming operators in 2025.
Sports Betting Alliance President Joe Maloney said the industry was willing to work with the state. He noted that licensed operators have served New Yorkers aged 21 and older in a regulated market since 2022, and said the group would work with the commission on measures to strengthen that market.
Sportsbooks have also faced scrutiny through legal claims. FanDuel is defending a lawsuit from a bettor who alleges he lost millions on the platform and that perks and VIP treatment contributed to his gambling addiction. FanDuel denies the allegations. In October, a federal class-action lawsuit alleged DraftKings uses AI to target customers who may be problem gamblers; DraftKings rejected the claim.
