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New York gaming regulators have moved forward with two proposals that could change how the state’s mobile sportsbooks operate: one would limit AI-driven personalization, and the other would require operators to identify and contact patrons who may be at risk for problem gambling.
The New York State Gaming Commission unanimously advanced revised versions of both measures. They are not final yet and will go through another round of public comment before returning to regulators for further discussion and a possible vote.
Proposed AI rule would restrict personalized betting prompts
The AI proposal would restrict mobile sports betting licensees, affiliates, and vendors from using AI, automated decision systems, algorithmic profiling, machine learning, or generative systems to analyze customer data and personalize promotions, bonuses, odds, betting limits, messages, and product recommendations.
Under the proposal, operators also would be barred from suggesting specific wagers, wager types, or amounts, and from promoting increases in spending, revenue, or engagement. The measure would not apply to customers who consent. It also includes an exemption for pari-mutuel horse racing apps that suggest wagers if the patron first affirmatively opts in.
Regulators said the revised proposal was based on a similar New Jersey rule, which does not outright ban the technology.
Problem gambling proposal would require outreach to at-risk patrons
The second proposal would require sports betting licensees to identify patrons who may be at risk for problem gambling behavior. A licensee would also have to designate a person to contact that patron and engage with them on problem gambling issues.
Commission Chairman Brian O’Dwyer said operators need to work together to share data so a customer restricted by one sportsbook does not simply move to another licensed operator. He warned that if the industry does not address the issue, the commission will.
What New York bettors and operators should watch next
New York has nine authorized mobile sports betting operators, and mobile wagering revenue is taxed at 51%.
For now, the key takeaway is that these proposals are still in progress. The next step is additional public comment, followed by a return to the commission for possible final action. Questions still unresolved include what changes may be made before a final vote and how operators would be expected to identify at-risk patrons in practice.
If the rules are adopted, they could reshape how sportsbooks in New York handle personalized marketing, betting prompts, and responsible gambling outreach. As always, anyone who chooses to bet should do so responsibly.
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Source: As reported by cdcgaming.com.
