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New York advances AI promotion and bettor-risk rules for sportsbooks

A 60-day comment period will follow the commission's vote on two proposals covering customer targeting and signs of harm.

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Key Points
The New York State Gaming Commission unanimously advanced two proposed rules on October 9
One proposal would restrict AI-driven individualized promotions and suggested wagers
The other would require mobile sportsbooks to identify and respond to at-risk activity

The New York State Gaming Commission has unanimously advanced two proposed regulations that would change how gambling operators target customers and how mobile sportsbooks respond to signs of risky betting. 

The vote on October 9 begins formal rulemaking. Neither proposal is in force, and the public will have 60 days to comment before the commission considers final action.

One proposal would restrict the use of artificial intelligence to deliver individualized promotions or suggested wagers. The commission's March draft included casinos, sportsbooks, racing organizations and lottery courier services within its scope. 

The second proposal would require mobile sportsbooks to identify customers who may be at risk and take appropriate steps after reviewing their activity.

The March preproposal draft outlined account-activity triggers for further review, including deposits exceeding $10,000 in 24 hours, wagers totaling more than $1m over 90 days and a 50% increase in app use compared with the preceding two weeks. 

The thresholds trigger a review before an operator decides a bettor is at risk. The precise requirements may change during the current rulemaking process.

New York has nine licensed mobile sports betting operators. The proposals would create a common regulatory framework across them while leaving implementation details open to comment. 

Commission Chair Brian O'Dwyer has also called for information sharing between operators, an issue that matters when a customer uses more than one sportsbook.

The Responsible Online Gaming Association warned that any new framework should account for existing operator safeguards and avoid requiring sportsbook staff to make clinical judgments. 

Those concerns now form part of the policy debate as the commission moves from preliminary discussions to a formal proposal.

The rules would add to New York's existing sports betting oversight, which includes licensing, advertising and responsible gambling requirements. Their eventual impact will depend on the final text, how operators are expected to identify risky patterns and what interventions regulators require. 

For now, the commission has opened a consultation rather than imposed new obligations.

Last month, a New York Times investigation raised questions about DraftKings' use of AI in marketing, a separate development that preceded the commission's formal vote.

Good to know

The March draft would require mobile sportsbooks to retain records of responsible-gaming interventions for seven years 

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