The boost that lands on your phone ten minutes before kickoff, for the exact team and bet type you always back, is not a coincidence. Sportsbooks build those offers from your betting history, and in New York that practice is now in the regulator’s sights.
On October 9, the New York State Gaming Commission unanimously advanced a revised proposal that would restrict how mobile sportsbooks use artificial intelligence to target customers. A second proposal, advanced the same day, would force operators to spot at-risk bettors and assign someone to talk to them. Neither rule is final, but together they would be one of the biggest changes to how New York sportsbooks market to customers since mobile betting launched in January 2022.
What the AI proposal would ban
The draft rule covers sportsbooks, their marketing affiliates and their technology vendors. It would restrict the use of AI, machine learning, algorithmic profiling and automated decision-making to analyze customer data and tailor:
- promotions and bonuses
- odds and betting limits
- messages and product recommendations
Operators would also be barred from suggesting specific bets, bet types or stake amounts, and from running promotions designed to increase a customer’s spending or engagement. Two exceptions matter: the rules would not apply to customers who consent to personalization, and pari-mutuel horse racing is exempt.
The Commission modeled the proposal on an existing New Jersey regulation, which restricts rather than outright bans the technology. The revised draft now goes back out for public comment before a possible final vote, and no date has been set.
The second rule: someone has to pick up the phone
The at-risk proposal would require each of the nine licensed mobile operators (Bally Bet, BetMGM, Caesars, DraftKings, Fanatics, FanDuel, Resorts World Bet, Rush Street Interactive and theScore Bet) to identify customers showing signs of problem gambling and designate a person to engage with them.
Commission chairman Brian O’Dwyer was blunt about the gap he wants closed. A bettor restricted by one sportsbook, he noted, can simply open an account at another. “The industry is on notice by me and this commission that they need to solve this problem,” he said, urging operators to share data. If they don’t, he warned, the Commission will impose a fix of its own.
Why New York is acting now
The numbers explain the urgency. New Yorkers have wagered more than $91.2 billion on mobile sportsbooks since launch, generating $8.3 billion in gross gaming revenue and $4.26 billion in tax, according to the State Comptroller. In the 2025-26 fiscal year alone, the state collected about $1.3 billion at a 51% tax rate, one of the highest in the country.
The market is still growing. The week ending October 4 produced $619.4 million in handle, the fourth-highest week in state history and up 12.5% on a year earlier. FanDuel took $228.2 million of that and held 10.3%, while DraftKings took more than $200 million and held 6.4%.
The harm data is growing too. Calls to the state’s HOPEline reached 2,545 in 2025, up 8.5% on 2020, and mobile sports betting has been the top reason for calling since 2022. The Comptroller also counted 1,972 alleged underage participation incidents in 2025, up from 54 in 2023. The share of sports betting tax set aside for problem gambling services doubles this fiscal year, from $6 million to $12 million.
What would change for New York bettors
If the rule passes as drafted, expect three practical differences.
Fewer tailored boosts, more flat offers. The personalized “your team, your parlay” boosts would largely give way to promotions offered to everyone on the same terms. That is less exciting, but easier to compare across apps.
A consent screen. Because personalization stays legal with consent, sportsbooks will almost certainly ask you to opt in. Read it before you tap accept. Saying no should not cost you standard promotions, only the targeted ones.
Limits set by rules, not models. The ban covers algorithmic betting limits as well as offers. Sharp bettors who have had their stakes quietly cut by a model may see more consistent treatment, although operators will still be able to manage risk.
Our view: right target, but the real fight is consent
We think the Commission has picked the right target. A promotion engineered by a model to raise spending is a different product from a sign-up bonus anyone can see, and New York’s own figures show average stakes falling while helpline calls rise. That points to a smaller group of heavy bettors carrying more of the market, exactly the group personalization reaches first. The Comptroller found the average account wagered $3,500 in 2025, down from $4,329 in 2024.
The weak point is the consent exemption. If opting in becomes one more box ticked during sign-up, the rule changes little. Watch the comment period for how consent must be collected and whether it can be withdrawn as easily as it is given.
Looking to 2027
With further public comment still to come and no vote scheduled, the realistic timeline puts final rules in 2027. We expect New York’s version to become the template other high-tax states copy, and we expect sportsbooks to answer with simpler, louder welcome offers rather than targeted ones. Meanwhile, prediction markets such as Kalshi sit outside these rules entirely, a gap the Comptroller has already flagged as a risk to state revenue. Our prediction markets guide explains how they differ from licensed sportsbooks.
Until then, the smart move is to treat every boost as an ad. Compare offers on our New York sportsbook promotions page, check how the apps rank on our best NY sportsbooks list, and read the full New York gambling laws guide if you want the legal detail.
If you or someone you know needs help, call or text the HOPEline at 1-877-8-HOPENY, or visit our responsible gambling page.