Legislation in the New York Assembly suggests tighter controls over sports betting operators and their ads. The bill would increase the restrictions gambling companies face in terms of advertising content and when those ads can air. It would also impose a $5,000 bet limit and restrict the number of deposits a user can make in a 24-hour period.
While the proposed changes could be packaged as measures to promote responsible gambling among New Yorkers, they could also limit regulated sportsbook operators’ ability to compete with unregulated channels in New York. That could mean less tax revenue for the state and set the table for potential regulated online casino play in the future.
A7962 modifies sports wagering rules in New York
Assembly Member Robert C. Carroll filed A7962 on April 16 and it has since been referred to the Assembly’s Racing and Wagering Committee. The bill has implications for both bettors and companies that hold sports betting licenses in New York.
The legislation limits bettors to five deposits with each licensee in a 24-hour period. A7962 also establishes that bettors can’t wager more than $5,000 on any single sporting event or within a 24-hour period on any number of events with a single licensee.
A final ramification for New York bettors is that they would no longer be able to make deposits using credit cards. Companies facilitating the bets would have new limits on their marketing.
A7962 bans advertisements that “target sports bettors” and marketing materials that “include information about odds boosts or similar offers, including advertising that contains the phrase ‘bonus,’ ‘no sweat,’ ‘bonus bet,’ or any other similar term.” Furthermore, sportsbooks are barred from running ads between the hours of 8 a.m. and 10 p.m. and during live sporting events regardless of when those games are broadcast.
New York has taken prior steps to increase awareness of the risks of gambling, including a 2023 law mandating warnings in all gambling advertisements. Carroll’s proposals could limit exposure to advertisements for sportsbooks but also might incentivize bettors to seek other options.
Possible ramifications of A7962’s passage
If A7962 becomes law in its current form, it seems sure to cut down on the frequency of advertisements for legal sportsbooks in New York. The removal of certain terms from ads could reduce the effectiveness of the remaining marketing materials, too. That could mean fewer triggers for people who struggle with gambling-related behavioral issues.
At the same time, that benefit would only apply to sportsbooks that New York regulates. Offshore online websites, sweepstakes-based websites offering sports-related games, and prediction markets facilitating sporting event-based contracts would not be bound to follow the new tenets that A7962 could interject into New York law.
New deposit and wagering limits could make those channels that are not regulated by the New York State Gaming Commission more appealing to some bettors, perhaps even those who deal with problem gambling issues. As a result, not only might New York’s licensed sportsbooks see less action but that would mean less tax revenue for the state as well.
Finding a balance between protecting the public from the harms of problem gambling while also giving operators in the regulated market an opportunity to offer a safer option for people who don’t struggle with such issues is a delicate matter. Carroll’s bill renews the conversation about what that balance should look like in New York’s Assembly.
