New York launches “Avoid Risky Bets” campaign against unlicensed gambling

• The New York State Gaming Commission launched the “Avoid Risky Bets” initiative on May 8, directing residents to guidance on identifying unlicensed online gambling platforms.
• The NYSGC classifies prediction markets, sweepstakes casinos and offshore betting sites as unlawful under New York State law, warning they lack consumer protections required of licensed operators.
• The campaign follows a directive from Governor Kathy Hochul and arrives as New York and the CFTC face off in federal court over authority to regulate prediction markets.

The New York State Gaming Commission (NYSGC) launched a public education campaign on May 8 warning residents about the risks of unlicensed online gambling, directing New Yorkers to guidance on identifying platforms the regulator says operate outside the state’s legal framework.

The initiative, titled “Unlawful Gambling = Risky Bets,” targets offshore betting sites, prediction markets and sweepstakes-style casinos, which the NYSGC says are unlawful under New York State law.

What’s prohibited

Per the NYSGC’s campaign page, everything outside of a defined list of state-licensed activities is prohibited in New York. That includes online casinos, sweepstakes-style platforms, prediction markets and offshore sites.

Licensed options cover sports wagering, advance deposit wagering on horse racing, authorized charitable raffles, interactive fantasy sports and online lottery purchases through approved couriers.

The commission says unlicensed platforms fail to meet the consumer protection standards required of licensed operators. Warning signs identified by the NYSGC include no NYSGC license, no customer service or contact information, a platform based outside the US, no age-restriction controls and no responsible gaming measures such as self-exclusion or cooling-off periods.

Regulators also warn that unlicensed operators may expose users to unfair wagering practices, unpaid winnings and identity theft risks. Per the commission, bettors may be unwittingly supporting organized crime. The NYSGC adds that some unlawful operators permit betting markets involving political violence, war or insider-driven outcomes.

NYSGC Chairman Brian O’Dwyer addressed the initiative’s purpose. He said:

“Legitimate, lawful, regulated gaming – of which there are ample options – has fair wagers, player safeguards, responsible gaming measures, and societal benefits. Whereas the unlawful gambling market rips off unsuspecting individuals – including youth – who think they are making legitimate wagers to the benefit of faceless, untraceable operations. While the two may sometimes look similar, it’s clear which one is a smart wager and which one is a risky bet.”

Youth access concerns

Underage access is central to the campaign. Per the NYSGC, the minimum age to wager on prediction markets and many offshore platforms is 18, three years below New York’s legal sports wagering age of 21.

The commission says some operators market to university students, in breach of state rules prohibiting licensed operators from advertising on college campuses.

Governor Kathy Hochul directed the commission to take action as part of her 2026 State of the State address, instructing it to prevent young people from downloading betting apps, creating accounts or using others’ accounts on gambling platforms.

Kathy Hochul, Governor of New York, said in January 2026:

“Let’s do more to cut off access to online sports gambling so our kids are not ensnared by addiction at a young age.”

The campaign follows a series of enforcement actions. New York banned sweepstakes casinos outright in December 2025, and Attorney General Letitia James sued Coinbase and Gemini in April over their prediction market platforms, alleging both were running illegal, unlicensed gambling operations and seeking fines, forfeiture of profits and customer restitution.

Federal collision

The campaign arrives amid an acute federal-state standoff. The Commodity Futures Trading Commission filed a lawsuit against New York on April 24 in the US District Court for the Southern District of New York, seeking a declaratory judgment that federal law grants it exclusive authority over event contracts and a permanent injunction barring the state from enforcing its gambling laws against CFTC-registered exchanges.

The action followed similar CFTC suits against Arizona, Connecticut and Illinois.

The AGA has publicly clashed with the CFTC over federal versus state jurisdiction, and Minnesota’s Senate voted in early May to ban prediction market wagers.

The NYSGC’s campaign also comes alongside broader regulatory proposals, including measures to bar licensed sports wagering operators from using artificial intelligence to target bettors and to establish activity triggers when patrons show signs of gambling harm.

With the federal case unresolved and multiple states deepening their enforcement posture, the outcome of the CFTC’s preemption argument will determine whether New York’s campaign against unlicensed prediction market platforms can be sustained or whether federal law ultimately overrides it.

Keep Reading

• Coinbase, Gemini face New York illegal gambling lawsuit
• AGA CEO calls CFTC boss “a joke” over prediction markets
• Minnesota Senate votes to ban prediction market bets and sweepstakes