New York regulator will reassess licenses of prediction market participants
Speaking at a meeting on Nov. 18, NYSGC Chair Brian O’Dwyer called prediction markets a direct threat to the commission’s authority,
The Chair of the New York State Gaming Commission (NYSGC) said on Tuesday that it’s time for the regulator to decide whether gaming licensees deserve to be allowed to do business in the largest U.S. sports betting market if they intend to offer prediction markets.
Speaking at a meeting on Nov. 18, NYSGC Chair Brian O’Dwyer called prediction markets a direct threat to the commission’s authority, as well as to the regulated gaming industry. Two major sportsbook licensees in the Empire State have announced plans to begin offering sports prediction markets. Two fantasy sports operators are already offering contracts from Crypto.com and Kalshi within their apps through partnerships.
“Given the dangers of prediction markets to both the state of New York and its citizens, it is now appropriate that this commission examine whether the participation of any of our present licensees in so-called prediction markets makes them unfit to maintain their gaming license,” O’Dwyer told the commissioners. “Our general counsel and staff shall examine this and make recommendations to this commission for the future.”
Further action coming in NY?
Several state gaming regulators have sent letters to licensed operators to warn them to think twice about working with prediction markets. Regulators in Arizona, Nevada and Ohio have gone so far as to state that even participating in event contracts elsewhere in the U.S. could impact their in-state status.
The NYSGC has not sent such a notice to licensees, but O’Dwyer stressed that New York requires its gaming licensee “to be of unblemished character and of the utmost fitness.”
One thing the commission has done is send Kalshi a cease-and-desist letter in late October, a move which led to an ongoing court battle. O’Dwyer suggested the agency is likely to take similar and potentially other actions against prediction market participants as it attempts to crack down on event contracts in the state.
O’Dwyer’s comments on prediction markets came the week after a New York Assemblymember filed a bill that would prohibit prediction market platforms from offering markets on athletic events, among other things.
New York licensees make predictions a reality
So far, four online gaming operators have either already begun offering sports contracts in some states or announced plans to do so.
FanDuel and DraftKings, the two biggest licensed online sportsbooks in New York, will launch prediction apps with geolocated sports contracts in the coming weeks. Meanwhile, two daily fantasy sports companies already offer sports prediction markets in some states. Underdog, which offers DFS in New York via a temporary license, has worked with Crypto.com since late summer, while PrizePicks launched sports contracts last week through a deal with Kalshi, just weeks after receiving a DFS license in New York.
SBC Americas asked the NYSGC commission whether it may target such operators with enforcement action.
NYSGC asks leagues to suggest bet changes
Meanwhile, the topic of prop betting also came up at Tuesday’s meeting.
Referring to the betting and game manipulation scandals enveloping the MLB and NBA, O’Dwyer said that the commission has instructed staff to re-examine the suitability of all game-specific individual player props and same-game player parlays.
However, in light of MLB and sportsbooks agreeing to cap certain micro betting markets, he noted that the right to limit certain wagers in New York lies solely with the commission. He added that an initial staff review of the 104 NFL prop bets that the commission allows found that only one was considered to be a potential concern.
Still, the NYSGC has written to all 70-plus leagues on which it allows wagers to ask them to suggest any limitation on wagers for their sports.
“While limiting exposure is a good step, it may not be enough,” he concluded. “It is not enough. If we believe any wager is susceptible to manipulation, we will eliminate it, not restrict its offering.”
https://sbcamericas.com/2025/11/19/new-york-regulator-props-predictions/