New York's gaming regulator has put the state's sportsbooks on notice. On October 9, the New York State Gaming Commission unanimously advanced a revised proposal that would restrict how sportsbooks use AI and other automated systems to personalize promotions and wagering recommendations. At the same meeting, Commission Chair Bryan O'Dwyer warned operators that they need to fix a gap in how responsible gambling data is shared.
The story is a sports betting one, but it matters to anyone who plays online poker, bets on sports or uses regulated gambling products. Rules that govern how operators can target customers tend to spread across states and across products. Here is what the commission said, what the proposal would do and what it could mean for players.
The Responsible Gambling Gap
The core concern, according to Covers, is that a customer restricted by one sportsbook can keep betting with any of the other seven licensed operators, because no uniform system exists for sharing responsible gambling data. In practical terms, if a player is flagged as at risk or self-excludes at one sportsbook, nothing automatically stops them from opening or continuing an account at another.
The commission gave FanDuel, DraftKings, BetMGM, Fanatics and Caesars the chance to develop a shared data solution before it considers further action. No deadline was given, and officials did not set a date for a final vote or implementation.
O'Dwyer was direct: "The industry is on notice by me and this commission that they need to solve this problem." He added that if operators fail to do so, "they may not like the situation or the solution that we come up with."
Joe Maloney, president of the Sports Betting Alliance, said the group will keep working with the commission on additional regulations that strengthen the regulated market.
The AI Proposal in Detail
The AI measure began as part of a regulatory package released by Governor Kathy Hochul in March, which targeted underage gambling and marketing to at-risk customers. The commission based its proposal on a similar New Jersey measure.
Rather than banning AI outright, the rules would restrict sportsbooks, their affiliates and vendors from using AI and other automated tools to analyze customer data and personalize promotions, bonuses, odds, betting limits, messages and product recommendations. The proposal would also bar operators from suggesting specific wagers, bet types and amounts, and from running promotions designed to increase spending, engagement or revenue.
The rules would not apply to customers who consent.
The revised proposal lists recent bankruptcies, judgments and similar debt indicators as potential signs of gambling risk. The commission sent the revised proposal out for further public comment and directed staff to gather more expert input on AI and gaming.
Why Regulators Are Focused on Personalization
Modern sportsbooks and online casinos use data analytics heavily. They segment customers by value, tailor bonuses to behavior and adjust betting limits based on a customer's profile. Industry executives argue that this improves the customer experience and allows for targeted responsible gambling interventions. Regulators and advocates argue that the same tools can be used to push high-spending customers to bet more.
The distinction matters. Personalization that offers a bettor a free bet on a team they follow is different from personalization that identifies a player who has a pattern of chasing losses and sends them a deposit match at the moment they are most vulnerable. The New York proposal aims to draw a line by prohibiting promotions designed to increase spending, engagement or revenue, while allowing consenting customers to opt in.
For context on related litigation, see our report on the DraftKings AI class action over problem gamblers in Massachusetts. The New York measure is part of a broader pattern of regulators scrutinizing how operators use data.
What It Means for Poker Players
Online poker in the United States is regulated on a state-by-state basis, and New York does not have regulated online poker. We covered the state's stalled efforts in our reports on the collapse of the New York iGaming bill and the outlook for 2027. Even so, regulatory decisions on sports betting often become templates for other forms of gambling, so poker players should pay attention.
Poker rooms also use data-driven promotions. Personalized rakeback offers, reload bonuses and VIP tiers rely on player behavior data. If regulators adopt rules on AI personalization for sportsbooks, similar restrictions could eventually apply to poker. The principle of requiring consent for targeted offers may well become standard.
At the same time, poker is a skill game in which players choose their own stakes and manage their own bankrolls. Our coverage of AI and cheating detection in online poker shows that operators also use AI to protect players, a legitimate and beneficial use that regulators will have to distinguish from marketing applications.
What It Means for Sports Bettors
For sports bettors in New York, the changes would be most visible in how promotions are delivered. Expect fewer personalized offers and more generic ones unless you opt in. In practice, the effect may be limited, since many promotions are already generic. But bettors who are used to receiving tailored odds boosts and custom parlays may see them become less frequent.
If you bet at sportsbooks, shop around for promotions and be careful with bonus terms. Our sportsbooks hub and reviews of BetOnline Sportsbook and SportsBetting.ag explain how the offshore options compare, and they highlight the importance of understanding rollover requirements before accepting any offer.
Responsible Gambling Tools You Can Use Now
Regardless of what regulators decide, players can protect themselves:
- Set deposit limits at every site you use. Do not rely on a single account to enforce limits.
- Use self-exclusion tools where available, and understand that they may apply only to one operator.
- Track your results honestly. Our bankroll management guide explains how to set a budget.
- Learn to recognize tilt. Our glossary entry on what is tilt describes how emotional decisions lead to losses.
- Seek help if gambling stops being fun. Most jurisdictions offer free, confidential helplines.
The Bigger Regulatory Picture
New York is not alone. Regulators across the country are looking at advertising, data use and affordability checks. Meanwhile, prediction markets are drawing legal attention, as we have documented in our coverage of state lawsuits against Kalshi and the comparison between prediction markets and sportsbooks. The commission's warning to licensed sportsbooks is notable partly because it highlights how a regulated market faces pressure from both sides: regulators demanding stricter safeguards and unregulated competitors operating with fewer restrictions.
Bottom Line
New York's Gaming Commission is pressing sportsbooks to share responsible gambling data and has advanced rules that would restrict AI-driven promotions unless customers consent. No deadline has been set, so the practical effect is still to come. For poker and sports betting fans, the key points are to expect more scrutiny of data-driven marketing, to use available tools to control your own play and to watch how these rules spread to other states and products.