New York bill takes aim at proxy betting and AI
Table of contents
- The New York Assembly passed NY A.9584 by a unanimous 142-0 vote, introducing a bill package of KYC, monitoring, risk-assessment, and responsible gaming requirements for mobile sports wagering operators.
- Governor Kathy Hochul previewed draft Gaming Commission rules covering AI limits, age-assurance and device-registration controls, biometric age assurance, and phased responsible gaming interventions.
- New York achieved a record $26.3 billion in online sports betting handle in 2025, the largest total of any US state.
New York lawmakers and regulators are advancing a package of measures to strengthen oversight of the state’s sports betting market, targeting proxy wagering, underage access, and the use of artificial intelligence by licensed operators.
NY A.9584 pass ed the New York Assembly on March 25 by a 142-0 vote and was delivered to the Senate, where it was referred to the Racing, Gaming and Wagering Committee.
The bipartisan bill was introduced by Assemblymember Carrie Woerner.
Legislation targets proxy bets
The legislation is a broad KYC and responsible gaming bill package. It defines proxy betting as placing a sports wager on behalf of another person and requires operators to implement written monitoring procedures capable of identifying the activity alongside account sharing, fraud, and wagering by prohibited bettors.
Operators would be able to suspend or close accounts linked to proxy betting, account sharing, or other unlawful activity, and may designate those users as prohibited bettors under state law. The bill also reinforces identity verification requirements, mandating that operators confirm a bettor is at least 21 years old and maintain formal written identity verification procedures.
A further component focuses on player risk profiling. Operators would be required to conduct documented risk assessments examining the nature, frequency, and severity of gambling behavior to determine whether a customer may be vulnerable to harm. Those assessments would result in classifications including at-risk, elevated-risk, and high-risk bettors.
Each operator’s responsible gaming lead would maintain and update an at-risk list subject to Gaming Commission review. The bill would limit the sale or sharing of collected consumer data, subject to limited exceptions.
Hochul targets AI and youth access
At the regulatory level, the New York State Gaming Commission published two sets of draft rules on March 25 — one addressing underage play prevention and one covering responsible gaming practices. The Commission is accepting public comments until May 15, 2026.
Governor Kathy Hochul previewed the measures on March 30, stating:
“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.”
The draft rules propose barring all licensees or franchisees from using AI to offer personalized promotions, suggested wagers, or wager amounts to individual customers.
On underage access, the Commission is considering requiring bettors to provide biometric age assurance at account creation, biometric identity verification before placing a wager in a session and again before the wager is accepted, along with device registration controls to prevent gambling apps from being downloaded onto a minor’s device and enhanced geolocation restrictions to flag access from unusual locations or devices.
The Commission acknowledged that underage individuals have placed wagers through accounts belonging to adults, or have otherwise found ways to participate despite existing age assurance requirements.
The proposed responsible gaming framework draws on a model from New Jersey and establishes specific behavioral triggers requiring operator intervention. These include large deposits, repeated increases to responsible gaming limits, repeated withdrawal cancellations, and repeated low-balance session endings.
Operators would respond through phased interventions, ranging from informational outreach at Phase 1 to a mandatory direct call or video session with a responsible gaming lead at Phase 3, with account suspension until the intervention is resolved.
Gaming Commission Chair Brian O’Dwyer said:
“No other form of gambling has pervaded our consciousness like sports wagering, and impressionable kids are constantly exposed to the practice. Per her direction, we have 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.”
Market scale drives scrutiny
New York recorded $26.3 billion in online sports betting handle in 2025, a 15.8 per cent increase from the prior year and the largest annual total of any US state. Gross gaming revenue reached $2.55 billion, generating $1.32 billion in tax income for the state.
New York has nine licensed mobile operators, including FanDuel, DraftKings, and BetMGM, taxed at 51 per cent of gross gaming revenue — the highest rate in the country.
The scale of that market has intensified legislative scrutiny across the current session. Alongside A.9584, lawmakers have introduced proposals to ban in-play wagering, require monthly account statements, restrict sportsbook advertising during live broadcasts, and prevent operators from limiting accounts held by winning bettors.
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