New York moves to limit AI in mobile sportsbook promotions

"The industry is on notice by me and this commission that they need to solve this problem," said Chairman Brian O'Dwyer of the New York State Gaming Commission (ProPublica). On October 9, 2026 the commission unanimously advanced two proposals that would limit artificial intelligence in mobile sportsbook promotions and require a named employee to engage patrons flagged as at risk. The texts are not final rules. No final-vote date has been set.

What Part 5404 would ban

Section 5404.1 of the October 9, 2026 public meeting book would stop a licensee, affiliate, agent or vendor using automated decision systems, algorithmic profiling, artificial intelligence, machine learning or generative systems on individual data. Banned uses include personalised promotions, bonuses, odds, limits, messages, suggested wagers or amounts, and steps meant to increase wagering or revenue. An October 5, 2026 memo ties the draft to Governor Kathy Hochul's 2026 State of the State. ProPublica reported that the proposals followed New York Times reporting that DraftKings used artificial intelligence to target promotions to losing bettors.

Patron consent does not waive section 5404.1, and nor does human approval of the output. The only opt-in is section 5404.2, a pari-mutuel horse-racing app, off by default, reaffirmed every 12 months, with no incentive and no fresh ask for 90 days after a refusal. Varying offers need clear and convincing seven-year logs of published criteria. Uniform offers stay allowed. This is not a ban on every model.

Thirteen triggers, then one named employee

Burns's memo of October 8, 2026 would make each mobile licensee name one responsible gambling lead. It follows a New Jersey proposal, adds a financial-vulnerability check, and stops direct advertising to anyone on the at-risk list.

Among 13 triggers: deposits above $10,000 in 24 hours, deposits above $100,000 in 90 days, more than $1 million wagered in 90 days, and a 50% rise in weekly login time against the prior two weeks. The figures are minimums in a proposal, not a rule in force.

Three phases follow a problem-gambling finding. Phase 1 notices limits and a 72-hour cooling-off option. Phase 2 is a video before another wager. Phase 3 is three phone attempts, 24 hours apart, then a suspension until contact, or closure if risk remains. Leaving the list needs 180 days with no new trigger.

After the vote, ProPublica reported, O'Dwyer recognised "the limitations of this proposal" and urged the nine licensed companies to share data so a flagged patron cannot skip an intervention by changing books. The meeting book does not require sharing. The sports-wagering page names Bally Bet, BetMGM, Caesars Sportsbook, DraftKings Sportsbook, theScore Bet, Fanatics Sportsbook, FanDuel Sportsbook, Resorts World Bet and Rush Street Interactive, and taxes sports wagering revenue at 51%.

Joe Maloney, president of the Sports Betting Alliance, said they "continue to work with regulators to ensure that any proposed regulations strengthen the regulated market," CDC Gaming reported. CDC also reports his claim of over $1 billion a year in tax revenue. That figure is an industry claim, not a commission total. The draft does not close the gap between nine lists.

The drafts also leave a wager outside a licensed book undefined. The NFL has told the Supreme Court that sports contracts are gambling. A June 5, 2026 count on this site found that prediction markets hold 8% of US sports betting, not more. Part 5404 does not reach that venue. The October 9, 2026 meeting page sets no final vote.

FAQ

Are the New York AI and at-risk rules in force?

No. Two proposals advanced on October 9, 2026, and no final-vote date is set.

Can a customer consent to AI-personalised sportsbook promotions?

No. Consent does not waive section 5404.1. The only opt-in is pari-mutuel horse racing, and it defaults to off.

What must an operator do when a patron hits an at-risk trigger?

Run a due-diligence review. If the patron is at risk, a named lead works through three phases that can end in account closure.

How long is public comment, and when is the final vote?

ProPublica reported 60 days of comment. The meeting page sets no end date and no final vote.

O'Dwyer has asked nine competitors to share names they flag. The drafts do not require it. Whether 60 days of comment produce a sharing rule, or nine separate lists, is what October 9 left open.

This article is informational analysis only and is not betting advice.

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