New York Regulators Want Sportsbooks To Spot Problem Gamblers
The New York State Gaming Commission is pushing sports betting operators to better identify players who may be at risk for problem gambling.
Commissioners have promised additional regulation if the industry doesn’t take action. It outlined an extensive list of regulations that may be coming if the industry fails to police itself.
“It is a problem that this commission will require to be addressed, and if the industry does not address it, then we will address it, and they may not like the situation or the solution that we come up with,” Gaming Commission Chair Brian O’Dwyer said.
“So, fair notice to the industry that they better come up with a solution. We’re giving them that opportunity.”
Designated Head Of Responsible Gaming & More
The commission’s proposed regulations would require sportsbooks to designate one employee as a “responsible gambling lead.” The staff member would identify at-risk users and help provide resources for treating gambling addiction.
The regulations would also require the responsible gambling lead to ensure these users don’t receive gambling promotions or marketing materials.
The commission has proposed banning AI or machine learning algorithms that could be used to “select, customize, time or deliver promotions, bonuses, odds, limits, messages, or product recommendations,” to certain users. This would “prohibit suggesting wagers, wager types or wager amounts, and creating promotions designed to increase spending, engagement or revenue.”
Beyond those proposals, the plan would call on sportsbooks to flag potential problem gamblers for a “due diligence review.” Commissioners outlined three thresholds that would trigger these reviews:
- Depositing more than $10,000 over a 24-hour period
- Depositing more than $100,000 over a 90-day period
- Betting a total amount more than $1 million over a 90-day period
Additionally, sports betting apps would flag users who end two or more gambling sessions in the same week with less than $1.
According to the Albany Times Union, bettors increasing their total wagers from their previous
session or making deposits from two different sources in a single day would have to be flagged.
Increased Focus On Responsible Gaming
The regulations come as Gov. Kathy Hochul (D) has pushed for additional regulations on the industry. In January, she outlined proposals meant to curb underage gambling, including the use of biometric data.
State gaming regulators followed that up in April with additional rules meant to prevent gambling addiction and promote responsible gaming. The state also banned sweepstakes gaming operators in 2025.
Sports Betting Alliance President Joe Maloney pointed out that the industry is a major contributor of New York tax revenue. He said the industry trade group was amenable to working with the state on responsible gaming issues.
“Since 2022, New Yorkers aged 21-plus 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.
“We will continue our efforts to work with the Gaming Commission to ensure that any additional proposed regulations strengthen the regulated market in New York state.”
The industry has faced growing pressure on the issue in recent months. FanDuel is currently facing a lawsuit from a bettor who alleges he lost millions of dollars on the platform. He claims the company helped fuel his gambling addiction via perks and VIP treatment. FanDuel denies those allegations.
In October, a federal class-action lawsuit alleged DraftKings uses AI to target customers who may be problem gamblers. DraftKings rejected the assertion.
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