New York gaming regulators have advanced proposals to restrict the use of artificial intelligence (AI) in sports betting promotions and require operators to identify and engage with bettors at risk of gambling harm.
The New York State Gaming Commission (NYSGC) unanimously voted to move forward with regulations that would prohibit mobile sports betting operators from using AI, algorithmic profiling, and other automated systems to personalize promotions, bonuses, odds, betting limits, or wagering recommendations. These measures aim to shield consumers from marketing practices that could encourage excessive or risky gambling behavior.
Under the proposed rules, sportsbooks would be banned from suggesting specific wagers, wager types, or amounts, and from using AI-driven tools to increase player spending or engagement without the explicit consent of the customer. The restrictions would not apply to parimutuel horse racing.
In addition, the NYSGC is proposing that licensees assign staff members to identify and engage patrons who may show signs of problem gambling. This initiative is designed to provide timely support and intervention for at-risk players, addressing concerns that customers restricted by one operator might simply move to another sportsbook.
NYSGC Chairman Brian O’Dwyer highlighted the need for industry cooperation, stating, “The mobile sports betting industry has long maintained that they considered integration of responsible gaming practices a significant element of their business,“ and urged operators to collaborate “by working together to share the data necessary to make sure that this doesn’t happen.“ He warned that the commission will enforce solutions if the industry fails to address these issues.
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%, generating significant revenue while aiming to maintain strong consumer protections.
The proposed AI restrictions are modeled after similar rules implemented in New Jersey and form part of Governor Kathy Hochul’s 2026 State of the State program. This program targets underage gambling, marketing to at-risk customers, and gambling addiction.
Before a final vote, the NYSGC will seek additional public comments on the revised AI rules. This process allows players, consumer groups, and operators to provide input on how these regulations may affect the betting experience and player safety.
For sports bettors, these changes could mean fewer personalized promotions that might encourage risky betting behavior and more proactive support if they show signs of gambling harm. Players should monitor updates on how these rules will be implemented and how operators adjust their marketing and responsible gambling practices.
More details on the proposals and opportunities for public comment are available on the New York State Gaming Commission website. For broader context on AI regulation in US sports betting, see CDC Gaming’s coverage here. Related developments in AI regulation for sports betting are also underway in Massachusetts, where operators face deadlines to respond to regulator inquiries about AI use in marketing, detailed here.
These regulatory efforts align with ongoing initiatives to enhance responsible gambling and player protection in the US sports betting market, reflecting a growing focus on consumer safety amid expanding legal wagering options.
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