New York gaming regulators have advanced proposals to restrict the use of artificial intelligence (AI) in sports betting promotions and require operators to identify bettors at risk of problem gambling.
The New York State Gaming Commission (NYSGC) unanimously approved moving forward with regulations that would limit how mobile sports betting operators use AI, algorithmic profiling, and other automated systems. These rules aim to prevent operators from personalizing promotions, bonuses, odds, betting limits, or wagering recommendations in ways that could encourage increased spending or engagement.
Specifically, sportsbooks would be prohibited from suggesting particular wagers, wager types, or wager amounts based on AI analysis of customer data. However, customers who provide explicit consent to receive personalized offers would be exempt from these restrictions. The proposed rules would not apply to parimutuel horse racing.
In addition to AI restrictions, the NYSGC is proposing measures requiring licensees to identify patrons who may show signs of problem gambling. Operators would need to designate a staff member responsible for engaging these customers and providing information about responsible gambling resources and support.
NYSGC Chairman Brian O’Dwyer expressed concern that bettors restricted by one operator might simply move to another sportsbook without protections. He stressed the importance of data sharing among operators to close these gaps. “The industry is on notice by me and this commission that they need to solve this problem,“ O’Dwyer said, warning that regulators will intervene if the industry fails to act.
Currently, nine mobile sports betting operators hold licenses in New York: Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, Resorts World Bet, Rush Street Interactive, and theScore Bet. The state taxes gross gaming revenue from mobile wagering at 51%.
These proposals are part of Governor Kathy Hochul’s 2026 State of the State program, which targets underage gambling, marketing to at-risk customers, and gambling addiction. The AI restrictions draw from similar regulations implemented in New Jersey, which also limit the use of AI and algorithmic profiling in personalized betting promotions.
Joe Maloney, president of the Sports Betting Alliance, said the industry is working with regulators to strengthen the regulated market. “The mobile sports betting industry has long maintained that they considered integration of responsible gaming practices a significant element of their business,“ he stated.
The NYSGC will open the revised AI rules for public comment before scheduling a final vote. Players and bettors in New York should monitor these developments, as the changes could affect how promotions and betting recommendations are presented, aiming to reduce risks associated with personalized marketing and improve protections for vulnerable customers.
For more information, see the CDC Gaming report.
Related coverage includes sports betting news and responsible gambling updates.
Elsewhere in the US, regulators in Michigan recently targeted illegal offshore operators offering unlicensed online gambling and sports betting, issuing cease-and-desist letters to 33 entities. This highlights ongoing efforts across states to protect consumers and enforce licensing requirements. Read more about that at CDC Gaming.
Meanwhile, Pennsylvania is enforcing a Supreme Court ruling requiring businesses to remove unlicensed skill games, further emphasizing the regulatory focus on player protection and market integrity. Details are available in the CDC Gaming report.
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