New York Votes to Ban AI-Tailored Betting Promotions

New York gaming regulators are on the verge of banning AI-created promotions for gambling licensees, including casinos and sportsbooks.

The New York State Gaming Commission (NYSGC) on Friday voted unanimously to prevent gambling operators from using artistic intelligence and automated tools to tailor promotions or recommended products to customers. Additionally, they approved a measure that would require mobile operators to intervene if accountholders demonstrate signs of a problem gambling.

Both proposals are now up for a 60-day public comment period, after which they may return to the Commission for a final decisive vote.

Banning AI gambling promotions

The rise of AI has affected nearly every industry, including gambling.

Companies have used the technology to enhance their product offerings, increase efficiency, and prepare targeted offers for customers. For example, individuals who have a history of favoring a particular product or increasing activity at a certain time may have  promotional offers that differ from other users.

Sportsbooks would also be barred from recommending specific bets based on customers’ betting history. However, users may be allowed to opt-out of the rule, depending on the final version of the proposal.

In total, the new regulation would apply to casinos offering slot machines and live-dealer table games, sports betting sites, mobile betting operators, video lottery gaming agents, racetracks and racings, lottery courier services, and betting providers. 

Operators would still be eligible to offer a variety of promotions to their entire customer base. They would also be allowed to create multiple offers, which may be presented concurrently or at separate times. 

AI-driven technology would still be allowed for technology related to consumer protection, anti-money laundering, age verification, and responsible gaming efforts.

Stifling problem gambling

If the new AI-focused changes are approved, betting operators would be required to provide regulators with access to customer accounts dating back at least seven years or until the account creation date, depending on which came earlier. Technological systems would also be audited, and internal changes must be provided at least 30 days in advance.

Horse racing operators could present suggested wagers to customers who download a separate app ad opti-in, so long as suggested bets are only based on that individual user’s history. The app also could not be available for self-excluded individuals and may not include promotions.

NYSGC officials said that proposal is an amended version of a bill that was created through a collaboration with industry stakeholders earlier this year. 

Meanwhile, the proposal to identify at-risk gamblers mimics a New Jersey rule proposal. Operators would have to highlight accounts that cross certain thresholds, including depositing more than $10,000 in 24 hours or $100,000 over 90 days, wagering more than $1 million in 90 days, increasing login time by 50% during a one-week period relative to the prior two weeks, opening but not completing the self-exclusion process three or more times in 30 days, repeatedly increasing betting limits, canceling withdrawals, ending sessions with less than $1 in an account, and submitting deposits from two or more sources in one 24-hour period.

Individuals who meet any of these criteria would trigger automatic feasibility reviews that could lead to email notices, education training, direct contact by a trained professional, an account suspension.

Both proposals follow Gov. Kathy Hochul’s (D) 2026 States of the State address, during which she highlighted a desire to limit the number of problem gambling cases state-wide.