New York is considering drafting measures that would require biometric verification for sports betting accounts, restrict how gambling operators use artificial intelligence, and require sportsbooks to intervene when customer behavior suggests possible harm.
Gov. Kathy Hochul first called for stronger gambling safeguards in her January 13 State of the State address, then previewed specific draft proposals Monday as the New York State Gaming Commission released them for public comment. The goal of the proposed measures is to keep minors off betting apps and strengthen responsible gaming protections for adults.
In the press release announcing the proposed safeguards, Hochul said:
“Mobile sports wagering is everywhere, enticing everyone — including our youth — to place bets without fully considering the consequences. We need strong regulatory safeguards to prevent those under 21 from gambling, keep artificial intelligence from preying on gamblers, and require sports wagering operators take real action if one of their customers is showing signs of gambling harm.”
She added that “only legal, regulated gaming includes those kinds of protections.” The Gaming Commission will accept comments on the draft language through May 15, seeking feedback from the full spectrum of those affected by the proposed measures, including operators, problem gambling experts, schools, parent groups, and religious organizations.
New York Eyes Biometric Checks to Block Underage Betting
One of the most aggressive and potentially controversial proposals would require sports bettors to submit their biometric data when opening an account with a sportsbook, and then verify it again before placing a wager.
Those who already have an account with a sportsbook would be given a two-month window for submitting their biometric data, and if they fail to do so, they’d face closure of their account.
New York regulators are considering using device registration controls to keep underage users from downloading betting apps. The state would also require licensed operators to use geolocation controls to prevent users from accessing apps on devices not associated with their account, or from locations so far apart that the user could not realistically be in both places at or around the same time.
If an adult lets an underage individual gamble, under the proposed rules, they could face a global ban from all legal gambling in the state, including the lottery, attending concerts or eating at a casino, and horse racing.
Draft Rules Would Require Intervention for At-Risk Patrons
The proposed rules also require operators to step up and do their part to promote responsible gaming. Part of that would be to stop using AI-powered services to offer personalized promotions or suggest wager amounts to customers.
Operators of mobile sports wagering apps would be required to appoint a dedicated responsible gaming lead and run checks for potentially risky behavior.
The proposal aligns with the idea of integrating responsible gaming tools into the user experience. In an interview with CasinoBeats, Wondr Nation CEO Anika Howard said the industry needs to build responsible gaming into product design, including “meeting players at first contact.”
“Are there onboarding flows that can be used to educate players? Can you embed how-to-play content, odds explanations, budgeting tools, and account setup so it’s not just an optional part of the journey?”
Based on the New York proposal, this is what they want operators in the state to do. Under the proposal, actions that would trigger an operator to intervene include deposits of more than $10,000 in a 24-hour period, account turnover surpassing $1 million in 90 days, or a 50% increase in time spent logged in compared to previous weeks.
The proposal calls for operators to follow a three-phase intervention process once they identify an at-risk customer using the list of triggers. These interventions range from sending responsible gaming information to making customers watch an educational video before betting again to suspending an account until a direct conversation takes place with the responsible gaming lead. In the most serious cases, the operator would have to close the customer’s account.
The call to implement these protections comes as New York’s three downstate casino licensees, Bally’s Bronx, Hard Rock Metropolitan Park, and Resorts World New York City, are projected to bring in annual gaming revenues of up to $5.6 billion once fully operational.
