New York Warns Bettors Against Predictions Ahead of Super Bowl

New York’s Attorney General Letitia James isn’t bashful about calling out bad actors.

The AG’s office issued a consumer warning on prediction markets ahead of Super Bowl LX. James described the industry as exploiting a loophole in gambling laws to offer sports betting. She reminded residents that prediction operators don’t adhere to the same regulations and fair-play rules as sportsbooks, leaving customers largely unprotected.

Kalshi, Polymarket, Crypto.com, and Robinhood are all expected to offer prediction markets for the Super Bowl, including for prop bets.

New York AG Doesn’t Hold Back

James didn’t mince words in the warning to New York residents, making it clear where she and the state lawmakers stand on the industry.

“Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets,” her consumer warning states. “It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”

Her strong words will likely prompt a response from the industry and possibly a new wave of lawsuits.

James Cites New York Safeguards

No one is arguing that the sports betting industry has everything figured out, but it is certainly making strides. 

When delivering the consumer warning regarding prediction markets, James highlighted the state’s strong gambling regulations. These include advertising restrictions, a minimum age of 21, and ongoing integrity and financial monitoring by the state.

James also touched on the state’s support for responsible gambling. New York’s 51% tax rate for online sportsbooks has generated critical tax revenue to support problem gambling programs. The state’s diverse population means more resources are needed than in other larger markets, and the Empire State has largely delivered.

Fight Could Get Political

While New York’s top attorney is one of many state officials to oppose sports betting, her name came to fame over her prosecution of Donald Trump. He recently attempted to file a lawsuit against James in response, but it was dismissed for procedural errors by the prosecution.

The legal fight with the embattled President has made James a controversial name in politics. Some believe she is intentionally targeting him, despite the available evidence.

The White House is a strong ally of the prediction industry and could use its existing accusations against James to negate her warning. That would further divide the political debate over the prediction market and end a bipartisan effort to rein in the industry.