New York Proposes New Rules to Curb Online Sports Betting Addiction

Gambling regulators in New York formally proposed two rules designed to curb problem gambling on Friday, adding the nation’s largest sports betting market to a growing list of states seeking online wagering reforms amid rising addiction diagnoses.

New York Proposes Strict Betting Thresholds and AI Bans

The proposed regulations arrive months after initial drafts and follow intense media scrutiny, including a ProPublica investigation last month revealing weaknesses in the “responsible gaming” guardrails used by major sportsbooks like DraftKings. Commission Chair Brian O’Dwyer stated that the rules provide an opportunity for the industry to prove its commitment to customer protection.

“The industry is on notice by me and this commission that they need to solve this problem,” O’Dwyer said, adding that the state will step in with its own solutions if operators fail to act.

One of the newly proposed rules mirrors New Jersey’s established framework, requiring sportsbooks to track specific financial thresholds to identify at-risk bettors and mandate check-ins. Another rule bars companies from deploying artificial intelligence to customize bonuses or wagers for individual users.

DraftKings confirmed it already adheres to New Jersey’s trigger thresholds, which include a deposit of more than $10,000 within a 24-hour period or wagers exceeding $1 million in a 90-day period. However, ProPublica reported that problem gambling frequently manifests at much lower financial levels. In an investigative test advised by addiction specialists and recovering addicts, a reporter deposited $21,600 over eight weeks and exhibited compulsive behavior that triggered only routine in-app notices rather than a company review.

Advocates and Operators Clash Over Regulatory Reach

Consumer advocates argue that the state measures fail to address the core issues. Brianne Doura-Schawohl, a public health and consumer protection advocate, criticized New York and New Jersey for endorsing regulations she described as giving the appearance of reform without enacting substantive change.

Following the unanimous vote to advance the rules, O’Dwyer acknowledged the proposal’s limitations and urged New York’s nine licensed mobile sports betting operators to share player data. Such information sharing would prevent problem gamblers from evading intervention by moving between different platforms.

The Responsible Online Gaming Association, a trade group representing DraftKings, FanDuel, and three other major operators, submitted a comment letter in May stating that the rules establish a strong framework. At the same time, the group recommended that regulators ensure the new triggers do not disrupt existing data-driven risk assessment systems or confuse corporate responsible gaming programs with the work of qualified clinicians.

FanDuel welcomed the opportunity to collaborate with regulators to establish best practices. DraftKings pointed to prior comments defending its responsible gaming program, with Chief Responsible Gaming Officer Lori Kalani asserting in an interview with ProPublica that the system functioned as intended by sending dozens of warning messages.

New Rules Trigger Public Comment Period and Cross-State Scrutiny

The formal introduction of the rules initiates a 60-day public comment period, after which the measures will return to the commission for final adoption barring major changes. The regulatory push stems from a directive issued earlier this year by New York Gov. Kathy Hochul, who also announced a 10-year survey of resident gambling behavior to guide future investments in care and protection.

The regulatory fallout extends beyond New York. Recent reporting by The New York Times revealed that DraftKings utilized AI and data scientists to target promotions specifically at losing bettors. Maryland Gov. Wes Moore has separately expressed a desire to restrict how gambling companies use AI to target users showing signs of addiction.

Common Questions About New York’s Betting Rules

What specific financial thresholds are sportsbooks required to monitor under the proposed rules?

The rules adopt New Jersey standards, which require tracking triggers such as deposits exceeding $10,000 within a 24-hour window or wagers totaling more than $1 million over a 90-day period.

How long is the public comment period for the new regulations?

The New York State Gaming Commission established a 60-day public comment period following the unanimous advancement of the rules on Friday.