NY Proposes AI Restrictions & At-Risk Sportsbook Rules

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Wed Oct 14, 2026, 10:00 am ET

Read Time: 4 minutes

NY Proposes AI Restrictions & At-Risk Sportsbook Rules

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New York regulators have advanced proposals to restrict artificial intelligence (AI) in sportsbook promotions and strengthen protections for at-risk bettors. 

The New York State Gaming Commission advanced both measures on October 9, 2026, opening a 60-day public comment period. The proposals aim to limit personalized gambling marketing and require operators to respond to signs of problem gambling. 

If adopted, the rules would introduce new responsibilities for licensed operators in the US online sportsbooks market.

Proposed AI Restrictions Target AI-Powered Betting Promotions

One proposal would restrict gambling licensees, affiliates and vendors from using AI and automated profiling to personalize promotions or recommend wagers. The restrictions would cover bonuses, odds, betting limits, messages and product recommendations tailored to individual customers.

Operators would also face limits on automated systems that suggest specific wagers, bet types or stake amounts. The proposal targets practices intended to increase customer spending, betting activity or engagement. However, it would not constitute a blanket ban on AI across sportsbook operations.

The draft includes provisions concerning customer consent and excludes pari-mutuel horse racing. Regulators have drawn on New Jersey's approach to certain AI-driven gambling marketing practices. 

Nevertheless, New York's final requirements will depend on the regulatory process and any revisions before adoption.

The proposal comes amid growing scrutiny of how sportsbooks use customer data to shape promotions. Regulators are also examining whether operators adequately protect customers whose gambling activity indicates potential harm.

Financial Triggers Would Flag At-Risk Bettors

A separate proposal would require mobile sportsbooks to identify customers who may be at risk of problem gambling. The rules outline specific activity triggers that would prompt operators to investigate concerning behavior.

For example, a customer would trigger a review after depositing more than $10,000 within 24 hours or $100,000 over 90 days. Another trigger would apply when someone visits a voluntary self-exclusion page at least three times within 30 days without completing the process.

Other indicators include repeatedly canceling withdrawal requests and making consecutive increases to responsible gambling limits. These triggers would require operators to conduct further checks rather than automatically classify every flagged customer as having a gambling problem.

The proposal would also require each operator to designate a responsible gambling lead. That person would oversee customer identification, appropriate interventions and protections against direct advertising to at-risk bettors.

O'Dwyer Calls for Cross-Operator Data Sharing

Commission Chair Brian O'Dwyer also raised concerns about the lack of coordination between sportsbook operators. Customers restricted by one platform could otherwise open accounts with competing operators and continue betting without equivalent safeguards.

Cross-operator data sharing is therefore central to the regulator's concerns. Sharing relevant information could help sportsbooks recognize customers who have already triggered responsible gambling interventions elsewhere. It could also prevent restrictions imposed by one operator from losing their effectiveness when customers switch apps.

"The mobile sports betting industry have long maintained that they considered integration of responsible gaming practices a significant element of their business," O'Dwyer said after the commission vote on Friday.

He warned that the industry must address gaps in its approach rather than rely on existing commitments. O'Dwyer also made clear that regulators would consider stronger measures if operators failed to act.

"The industry is on notice by me and this commission that they need to solve this problem," O'Dwyer said. "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."

His comments signal that New York gambling regulators expect operators to take greater responsibility for identifying and assisting vulnerable customers. They also suggest that the commission could pursue more prescriptive requirements if voluntary industry measures prove insufficient.

New York Gambling Proposals Face Further Review

The proposals align with Governor Kathy Hochul's 2026 State of the State agenda, which included measures to address gambling addiction and protect vulnerable customers. They also reflect wider regulatory concerns about personalized marketing and the use of customer data in online betting.

The financial stakes are significant for New York. The state taxes mobile sports wagering revenue at 51% and generates more than $1 billion annually in tax revenue from the market. Consequently, any changes to sportsbook operations could carry implications for both consumer protection and a substantial source of state funding.

If adopted, the rules could force operators to reassess promotional systems, customer monitoring and cooperation with competing platforms. Both proposals face further consideration following the public comment period, and the commission has not set a date for a final vote.

For operators, the proposals signal that responsible gambling practices will remain a central focus of regulatory oversight. Their eventual implementation could reshape how sportsbooks market betting products and respond to customers showing signs of potential harm.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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