New York gaming regulators warned online sportsbooks Friday to do more to protect at-risk bettors, including sharing data across operators.
- Regulators want sportsbooks to share data so customers restricted by one operator can’t simply continue betting with another.
- The proposed rules would restrict AI-driven promotions and personalized wagering recommendations.
- The commission approved a revised AI proposal for further public comment and discussion.
The New York State Gaming Commission unanimously advanced a revised proposal restricting how sportsbooks use AI and other automated systems to personalize promotions and wagering recommendations.
While the AI proposal remains under consideration, chair Bryan O’Dwyer warned operators they must work together to better protect consumers or risk regulatory intervention.
“The industry is on notice by me and this commission that they need to solve this problem,” O’Dwyer said. “They better solve the problem because I think it is a problem. It is a problem that needs to be addressed.”
Fair notice
The commission is concerned that a customer restricted by one sportsbook could continue betting with any of the other seven licensed operators because there is no uniform system for sharing responsible gambling data.
“The mobile sports industry wagering has long maintained that they considered integration of responsible gaming practices a significant element of their business. I believe these proposed rules provide an opportunity for the industry to illustrate its commitment by working together to share the data necessary to make sure that this doesn't happen,” O’Dwyer said. “It is 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 the situation or the solution that we come up with.”
New York sports betting regulators are giving operators, including FanDuel, DraftKings, BetMGM, Fanatics and Caesars, an opportunity to develop a shared data solution before the commission considers further action.
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Cracking down on AI marketing
The commission moved forward with a revised AI rules proposal that will receive additional public comments and commission discussion.
The original proposal was included in a regulatory package Gov. Kathy Hochul released in March targeting underage gambling and the marketing of gambling to at-risk customers.
The New York commission based its proposal on a similar measure in New Jersey. Rather than banning AI outright, the rules would restrict sportsbooks, their affiliates, and vendors from using AI and other automated tools to analyze customer data and personalize promotions, bonuses, odds, betting limits, messages, and product recommendations.
Additional revisions
The proposed rule also bans operators from suggesting specific wagers, types of bets, and amounts while also avoiding promotions to increase spending, engagement, or revenue.
The measure wouldn’t apply to customers who consent. The revised proposal also identifies recent bankruptcies, judgments, and similar debt indicators as potential signs of gambling risk.
The commission also directed staff to gather more expert input on AI and gaming. Officials did not set a date for a final vote or implementation.
