New York Governor Hochul Unveils New Protections Aimed at Reducing Youth Betting and Problem Gambling

(AsiaGameHub) –   New York is looking to draft rules that would mandate biometric verification for sports betting accounts, place limits on how gambling operators utilize artificial intelligence, and require sportsbooks to step in when customer behavior indicates potential gambling harm.

Gov. Kathy Hochul first proposed stricter gambling safeguards during her January 13 State of the State address, then unveiled specific draft proposals on Monday as the New York State Gaming Commission published them for public feedback. The aim of these proposed rules is to keep minors off betting apps and bolster responsible gaming protections for adult users.

In the press release announcing the proposed safeguards, Hochul stated:

“Mobile sports wagering is ubiquitous, luring everyone — including our young people — to place bets without fully weighing the consequences. We need robust regulatory safeguards to stop those under 21 from gambling, prevent artificial intelligence from targeting vulnerable gamblers, and mandate that sports wagering operators take concrete action if any of their customers exhibit signs of gambling harm.”

She also noted that “only legal, fully regulated gaming offers these types of protections.” The Gaming Commission will accept input on the draft language until May 15, gathering feedback from all stakeholders impacted by the proposed rules, including operators, problem gambling specialists, schools, parent advocacy groups, and religious organizations.

New York Considers Biometric Checks to Prevent Underage Betting

One of the most ambitious and potentially divisive proposals would mandate that sports bettors provide their biometric data when creating an account with a sportsbook, then complete a second verification check before placing a bet.

Existing sportsbook account holders will be granted a two-month period to submit their biometric data, and those who fail to comply will have their accounts shut down.

New York regulators are also looking to implement device registration controls to block underage users from downloading betting apps. The state will also require licensed operators to use geolocation tools to prevent users from accessing apps on devices not linked to their account, or from locations that are too distant for the user to reasonably be present at both spots around the same time.

Under the proposed rules, any adult who allows a minor to gamble could face a statewide ban on all legal gambling activities, including the lottery, attending casino concerts, dining at casino restaurants, and horse racing.

Draft Rules Mandate Intervention for At-Risk Gamblers

The proposed rules will also require operators to do their part to advance responsible gaming practices. One key requirement is halting the use of AI-powered tools to deliver personalized promotions or recommend wager sizes to customers.

Mobile sports wagering app operators will be mandated to appoint a dedicated responsible gaming lead and conduct monitoring for signs of potentially risky player behavior.

The proposed rules align with the concept of embedding responsible gaming tools directly into the user experience. In an interview with CasinoBeats, Wondr Nation CEO Anika Howard noted that the industry should build responsible gaming practices into product development, including “engaging players from their first interaction.”

“Are there onboarding processes that can be used to educate new players? Could we embed step-by-step play guides, odds explanations, budget tracking tools, and account setup resources so these are not just optional add-ons to the user journey?”

The New York proposal lays out exactly these requirements for in-state operators. Under the draft rules, several behaviors will trigger operator intervention: deposits exceeding $10,000 within a 24-hour window, total account activity surpassing $1 million over 90 days, or a 50% jump in daily logged-in time when compared to prior weeks.

The draft rules outline a three-phase intervention process for operators once they flag an at-risk customer using the established trigger list. These steps start with sending responsible gaming resources to the customer, progress to requiring the player to watch an educational video before placing another bet, and include suspending the account until the user has a direct conversation with the dedicated responsible gaming lead. In the most severe cases, operators will be required to permanently close the customer’s account.

The push to enact these protections comes as New York’s three downstate casino licensees — Bally’s Bronx, Hard Rock Metropolitan Park, and Resorts World New York City — are forecast to generate annual gaming revenues of up to $5.6 billion once they are fully up and running.

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