New York Proposes Prohibition on Artificial Intelligence in Sports Betting Advertisements

(AsiaGameHub) –   The New York State Gaming Commission is considering a series of new regulations designed to significantly bolster protections for sports bettors across the state. Regulators in New York aim to safeguard bettors from developing gambling addiction and to restrict access to the sports betting market for underage individuals.

Should these proposals be adopted, licensed betting operators would be prohibited from utilizing artificial intelligence to target and customize betting offers. Operators would be mandated to identify at-risk players and curtail direct marketing towards them, in addition to implementing a formal intervention program. Furthermore, each operator would need to establish a system to automatically flag these players and initiate an intervention process based on specific behavioral indicators, including but not limited to excessive deposits, numerous canceled withdrawals, and an unusually sharp increase in betting activity.

Governor Kathy Hochul said:

Mobile sports wagering is ubiquitous, luring everyone, including our youth, to place bets without adequately considering the repercussions. We require robust regulatory safeguards to deter those under 21 from gambling, prevent artificial intelligence from exploiting gamblers, and mandate sports wagering operators to implement genuine measures if one of their customers exhibits signs of gambling harm.

Regulators are also exploring the potential use of biometric identification to help prevent underage gambling and enhance account security through face recognition or fingerprints. This comes alongside efforts to establish more stringent geolocation controls and impose penalties on individuals who allow underage minors to access a sports betting site or a physical betting location.

NYSGC Chair Brian O’Dwyer said in a statement: 

As Governor Hochul accurately noted: No other form of gambling has infiltrated our collective awareness quite like sports wagering, and vulnerable youth are continually exposed to the practice. Following her guidance, we have identified further methods to protect our young people, assist those in moments of crisis, and ensure legalized, regulated gaming remains safe for all New Yorkers. We anticipate public feedback on these crucial proposals.

The draft regulations are presently open for public comment until 12 PM in mid-May, as New York places player protection at the forefront of its expanding sports betting industry.