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The New York State Gaming Commission has advanced a proposal that would restrict how mobile sports betting operators use AI and other automated systems to market to players in the state. The revised measure would bar operators from using customer data to personalize certain promotions and wagering recommendations, and it now heads to another round of public comment.
The commission also moved forward a separate proposal focused on problem gambling, adding another potential compliance obligation for New York’s licensed sportsbooks.
Proposed rule would limit AI-driven personalization in sportsbook marketing
According to the commission, the proposal would prohibit licensees, affiliates, and vendors from using AI, automated decision systems, algorithmic profiling, machine learning, or generative systems to personalize promotions, bonuses, odds, betting limits, messages, and product recommendations using customer data.
The rule would also bar operators from suggesting specific wagers, wager types, or wager amounts. Promotions intended to increase spending, revenue, or engagement would be prohibited under the proposal as well.
The restrictions would not apply to customers who give consent, and parimutuel horse racing would be exempt. The commission has said the New York proposal was modeled on a comparable regulation in New Jersey.
New York currently has nine authorized mobile sports betting operators and taxes mobile wagering gross gaming revenue at 51%.
Separate proposal targets problem-gambling intervention
In a second action, the commission advanced a proposal that would require sports betting licensees to identify patrons who may show signs of problem-gambling behavior. Each licensee would also need to designate a person to engage those patrons on problem-gambling issues.
Chairman Brian O’Dwyer said he was concerned that a customer restricted by one operator could simply open an account with another licensed sportsbook. He urged the industry to work together on data sharing, saying the issue should be addressed collaboratively.
Sports Betting Alliance president Joe Maloney said the group would "continue to work with regulators."
What New York players and operators should watch next
The revised AI proposal is set for another public comment period before returning to the commission for further discussion and a possible vote. The source did not specify when that comment period will close or what penalties could apply for violations.
For players, the immediate change is that nothing has taken effect yet. For operators, the key issue is that New York regulators are signaling closer scrutiny of personalized sportsbook marketing and responsible-gaming controls.
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Source: As reported by yogonet.com.
