The New York State Gaming Commission (NYSGC) has taken a significant step towards limiting the use of artificial intelligence in mobile sports betting. On Friday, commissioners unanimously advanced a proposal that would restrict operators, affiliates, and vendors from using AI and automated systems to personalize promotions and wagering recommendations for individual customers.
Details of the Proposed AI Restrictions
The revised proposal prohibits the use of AI, algorithmic profiling, machine learning, and generative systems to analyze customer data for tailoring promotions, bonuses, odds, betting limits, messages, and product recommendations. Sportsbooks would also be barred from suggesting specific wagers, wager types, or amounts, and from running promotions aimed at increasing customer spending or engagement. These restrictions would not apply to customers who provide explicit consent, and parimutuel horse racing is exempt from the measure.
The NYSGC modeled its rule after a similar regulation in New Jersey, which also addresses the use of AI in gambling but does not ban the technology outright. Before becoming law, the New York proposal will undergo another period of public comment and further commission review.
New Measures to Address Problem Gambling
In the same session, the Commission advanced a separate rule requiring sports betting licensees to identify patrons who may show signs of problem gambling. Each operator would need to appoint a designated staff member to engage with at-risk customers and address gambling-related concerns. NYSGC Chairman Brian O’Dwyer emphasized the need for operators to collaborate and share data to prevent customers restricted by one sportsbook from simply moving to another.
Impact on Industry Stakeholders
For operators, affiliates, and suppliers, these proposed rules represent a shift in how customer data and AI-driven personalization can be leveraged in marketing and engagement. The changes may require adjustments to promotional strategies and customer interaction protocols. Affiliates and vendors working with New York-licensed operators will also need to ensure compliance with the new restrictions. The rules are part of a broader push by state regulators and Governor Kathy Hochul’s administration to address issues such as underage gambling, marketing to at-risk individuals, and gambling addiction.
Key takeaways
- NYSGC is moving to restrict the use of AI in personalizing sports betting promotions and recommendations.
- Operators, affiliates, and vendors would be barred from using automated systems to tailor offers unless customers consent.
- A separate proposal requires licensees to identify and engage with patrons showing signs of problem gambling.
- Both measures are part of New York’s broader efforts to strengthen consumer protection in gambling.