New York Advances AI Betting Restrictions and Stronger Problem Gambling Protections

NEW YORK – The New York State Gaming Commission advanced two proposals to restrict AI-driven betting promotions and strengthen problem gambling protections. The measures would limit how gambling operators use customer data and require mobile sportsbooks to identify and assist potentially vulnerable bettors.

Commissioners unanimously approved moving the revised measures forward for formal rulemaking. The proposals build on earlier gambling safeguards proposed in March as part of Governor Kathy Hochul’s 2026 agenda to address gambling addiction, underage betting and potentially harmful marketing practices.

New York Seeks to Restrict AI-Driven Betting Promotions

The proposed AI regulations would prohibit licensed gambling businesses, their affiliates and vendors from using artificial intelligence, machine learning and algorithmic profiling to personalize promotions based on customer data. The restrictions would extend beyond mobile sportsbooks to commercial casinos, video lottery operators and other licensed wagering businesses.

According to the commission’s October 9 meeting materials, operators would be prohibited from using automated systems to customize bonuses, odds, betting limits, marketing messages and product recommendations. The measures would also prevent systems from suggesting specific wagers or betting amounts and targeting customers with promotions designed to increase wagering activity.

Customer consent or human review of automated recommendations would not exempt operators from the restrictions. However, the proposal would permit uniformly available promotions and automated systems used exclusively for fraud prevention, age verification and responsible gambling interventions.

A limited exception would allow certain pari-mutuel horse racing applications to provide personalized wager suggestions when customers explicitly opt in. Those applications would face additional restrictions on data use, promotional messaging and player protection.

Sportsbooks Would Face Mandatory Intervention Requirements

The second proposal would require mobile sports betting operators to identify customers showing potential signs of problem gambling and conduct reviews of their wagering behavior and financial vulnerability. Operators would need to appoint a designated responsible gambling lead to oversee interventions and provide affected customers with information about available support.

Automatic review triggers would include deposits exceeding $10,000 within 24 hours, deposits above $100,000 over 90 days and wagering activity surpassing $1 million during the same period. Other warning indicators would include repeated attempts to access self-exclusion pages, frequent withdrawal cancellations and sudden increases in betting activity.

Where a review identifies potential gambling harm, operators would follow a phased intervention process. Initial steps would involve notifying customers about deposit limits, cooling-off periods and self-exclusion options. Further interventions could require viewing responsible gambling educational material or speaking directly with a designated employee.

More serious cases could result in account suspension or closure. Operators would also be required to prevent identified at-risk customers from receiving direct promotional materials.

Regulators Warn Sportsbooks over Player Protection Gaps

Commission Chairman Brian O’Dwyer raised concerns that customers restricted by one sportsbook could simply move to another licensed operator. He urged the industry to improve cooperation and share relevant information to prevent vulnerable bettors from avoiding intervention.

“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, then 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 the organization would “continue to work with regulators to ensure that any proposed regulations strengthen the regulated market” in New York. He also emphasized the consumer protections established through the state’s licensed sports betting framework.

The revised proposals will undergo a 60-day public comment period following their formal publication before returning to the commission for further consideration. Regulators have not announced a date for a final vote, leaving operators awaiting the final requirements governing automated promotions and responsible gambling interventions.

RELATED TOPICS: Responsible Gambling