New York Moves to Curb Youth Gambling, Restrict AI Betting Tactics

MOUNT HOPE, N.Y.–New York Gov. Kathy Hochul is weighing measures to curb underage online gambling and restrict the use of artificial intelligence by sports betting operators to target customers, part of a broader push to strengthen online safety and protect at-risk gamblers.

This comes after the governor directed the New York State Gaming Commission in early January to draw up measures aimed at preventing young people from accessing betting apps or accounts, and to explore using new technology to identify and support those who may need help with gambling addiction.

“Mobile sports wagering is everywhere, enticing everyone—including our youth—to place bets without fully considering the consequences,” Hochul said in a March 30 statement. “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.”

Gaming Commission Chair Brian O’Dwyer said: “The commission has identified additional ways to protect our youth, help those who need it at the point of crisis, and keep legalized, regulated gaming safe for all New Yorkers. We look forward to hearing from the public on these important proposals.”

As part of that, the commission created several recommendations that aim to keep those younger than age 21 in the state from using mobile sports gambling and other online gambling mediums. This includes preventing them from downloading betting apps, creating accounts on betting platforms, or using other people’s accounts.

The legal age to gamble in New York is 21, with some exceptions, such as buying lottery tickets and betting on horse races, which is legal at age 18.

One of the commission’s recommendations to prevent underage individuals from gambling online would be to employ age-assurance controls that verify a device owner’s age through the operating system. Underage users could then be identified and prevented from downloading inappropriate applications.

Individuals creating accounts might need to provide biometric data to verify that the same person is using the account later. The accounts of anyone who would not provide the data within 60 days of the rule’s enactment would be closed.

Gambling platform operators would have to require users to provide biometric identification before placing wagers during an application session, and before any bets are accepted. Geolocation could also be used to lock people out of accounts if they access them from an unusual location without biometric identification.

Further recommendations include preventing the same account from being accessed from multiple locations at once, enabling individuals to prevent their Social Security number from being used to set up an account for a period of time, and reporting to the commission anyone who has provided access to underage people. People caught doing so would be banned from gambling in New York.

The commission is also banning all licensees or franchises in all industries from using AI to offer personalized promotions or suggest wagers. A series of gambling regulations is being considered by the commission that would trigger interventions when at-risk patrons spend certain amounts of money over limited periods of time.

Comments on the language of the commission’s draft regulations are being accepted until May 15.

The governor’s office said in January 2024 that New York collected a total of $1.75 billion from legal mobile sports betting in its first two years, 2022–2023, of legal mobile sports wagering.