New York proposes stricter sports betting rules to combat gambling addiction

New York regulators have proposed new rules to combat gambling addiction following investigations into the effectiveness of current responsible gaming safeguards. The proposed measures aim to address weaknesses in how sportsbooks identify and intervene with at-risk bettors.

A ProPublica investigation highlighted these vulnerabilities through an experiment where a reporter triggered multiple problem gambling red flags. Despite losing significant funds rapidly and attempting to use a “cool-off” period, the reporter was later targeted by a VIP representative with incentives to deposit more money. The report noted that current industry thresholds, such as those used by DraftKings, often fail to catch problem gambling that manifests in smaller, more frequent amounts.

The new New York proposals include adopting specific thresholds for identifying at-risk users, similar to guidelines used in New Jersey, and banning the use of artificial intelligence to customize bonuses or wagers. Brian O’Dwyer, chair of the commission, stated that the industry must demonstrate a commitment to protecting customers or face further regulatory intervention.