New York Advances AI Betting Ban And At-Risk Bettor Rules
New York gaming regulators have formally advanced two rules aimed at curbing gambling addiction, including a first-of-its-kind ban on using artificial intelligence to personalize betting promotions, after a wave of media scrutiny over how sportsbooks target at-risk bettors.
The New York State Gaming Commission unanimously advanced the proposals on Friday, following months of drafting and public comment, according to ProPublica.
New Thresholds For At-Risk Bettors
One rule would adopt thresholds New Jersey already uses to flag at-risk bettors, requiring licensees to identify patrons who deposit more than $10,000 in 24 hours or wager more than $1 million over 90 days, and to assign someone to check in with them.
A second rule would bar sportsbooks, their affiliates and vendors from using AI, algorithmic profiling, machine learning or generative systems to personalize bonuses, odds, betting limits, messages or suggested wager amounts.
Commission chairman Brian O'Dwyer said the proposals "provide an opportunity for the industry to illustrate its commitment" to protecting customers. "The industry is on notice by me and this commission that they need to solve this problem," he said. "If the industry does not address it, then we will address it and they may not like the solution that we come up with."
Rules Follow DraftKings VIP Programs Report
The official introduction follows a ProPublica investigation that found a reporter who deposited $21,600 into a DraftKings account over less than eight weeks, exhibiting signs of problem gambling throughout, was made a VIP rather than flagged for review.
It also follows New York Times reporting that DraftKings used AI and data scientists to target promotions at losing bettors.
Gambling reform advocate Brianne Doura-Schawohl argued the rules still do not go far enough, saying New York and New Jersey "are clearly complacent in the status quo by endorsing and prescribing regulations that are nothing more than giving the appearance of reform."
60-Day Comment Period
New York has licensed nine mobile sports betting operators, including Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, Resorts World Bet, Rush Street Interactive and theScore Bet, and taxes mobile wagering revenue at 51%.
A FanDuel spokesperson said the company "welcomes the opportunity to engage with regulators," while DraftKings referred ProPublica to its earlier statements defending its responsible gaming program.
There will be a 60-day public comment period before the rules return to the commission for further discussion and a possible final vote. Regulators in Maine and Michigan have also said they are reviewing issues raised by the same reporting, while Massachusetts and Maryland officials have signalled interest in restricting AI use by gambling operators.
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