New York Moves To Restrict AI Use In Sports Betting Promotions And Recommendations
The New York State Gaming Commission has advanced proposals to limit personalised betting promotions and strengthen protections for customers showing signs of problem gambling.

The New York State Gaming Commission (NYSGC) has advanced proposed regulations that would restrict how licensed mobile sportsbooks use artificial intelligence to personalise promotions, betting recommendations and customer engagement.
Commissioners unanimously approved a revised proposal on 9 October, seeking to prevent operators from using AI and automated decision-making systems to analyse customer behaviour for targeted marketing and wagering recommendations without customer consent.
The measures form part of a wider effort to strengthen consumer protection in New York's regulated sports betting market, with regulators also progressing separate requirements aimed at identifying and supporting customers who may be experiencing gambling-related harm.
Both proposals will undergo further public consultation before returning to the Commission for consideration and a potential final vote.
AI Restrictions Target Personalised Betting Promotions
Under the proposed regulations, licensed sportsbooks, their affiliates and technology suppliers would face restrictions on using artificial intelligence, machine learning, algorithmic profiling and other automated systems to analyse individual customer data.
The restrictions would cover personalised promotions, bonuses, odds, betting limits, marketing communications and product recommendations. Operators would also be prohibited from using these technologies to recommend specific wagers, betting markets or staking amounts, or to deliver targeted promotions designed to increase customer spending or engagement.
However, the proposed rules would allow personalised services where customers have provided their consent, meaning the regulations would not amount to an outright ban on AI within sports betting operations. Pari-mutuel horse racing would also be exempt from the measures.
The NYSGC has drawn on a comparable regulatory framework introduced in New Jersey, which similarly seeks to control the use of automated technologies in gambling marketing rather than prohibit their deployment entirely.
Operators Face Stronger Responsible Gambling Obligations
Alongside the AI proposal, commissioners advanced separate regulations requiring mobile sports betting operators to identify customers displaying potential indicators of problem gambling.
Each licensee would be required to designate an individual responsible for engaging with identified customers and addressing concerns relating to their gambling behaviour. The measures are intended to strengthen early intervention and ensure operators take a more proactive approach to customer protection.
NYSGC Chairman Brian O'Dwyer also raised concerns about customers moving between licensed sportsbooks after being identified as potentially at risk by another operator. He called for greater cooperation and information sharing across the industry to prevent vulnerable customers from avoiding protective measures simply by opening accounts elsewhere.
“The mobile sports betting industry has long maintained that they considered integration of responsible gaming practices a significant element of their business,” O'Dwyer said.
He subsequently warned that regulators would consider further intervention if operators failed to address the issue themselves.
“The industry is on notice by me and this Commission that they need to solve this problem,” he added. “It’s 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 it or the solution we come up with.”
Industry Responds To Proposed Regulations
The measures form part of Governor Kathy Hochul's wider consumer protection programme, which includes initiatives addressing underage gambling, marketing practices targeting vulnerable customers and gambling addiction.
New York currently has nine licensed mobile sports betting operators, including DraftKings, FanDuel, BetMGM, Caesars Sportsbook and Fanatics. The state applies a 51% tax rate to gross gaming revenue generated through mobile sports wagering.
Sports Betting Alliance President Joe Maloney said the industry would continue engaging with regulators as the proposals progress, while emphasising the contribution of New York's existing regulated market.
Maloney said the state's licensing framework had provided consumers with a regulated alternative to illegal gambling since 2022, with licensed operators generating more than $1 billion in annual tax revenue.
The revised proposals remain subject to consultation, with the Commission yet to determine whether the restrictions will be adopted in their current form.







