New York lawmakers and regulators are advancing a series of measures aimed at strengthening oversight across the state’s sports betting market. The latest developments include legislative action targeting proxy betting and expanded regulatory proposals designed to address underage access, artificial intelligence use, and gambling-related harm.

The initiatives reflect growing attention on how the state manages its rapidly expanding betting ecosystem, which has set repeated records in recent years.

Assembly Advances Proxy Betting Ban

A bill passed unanimously by the New York Assembly introduces new requirements for licensed sportsbook operators while defining and prohibiting proxy betting. Assembly Bill 9584, approved by a 142-0 vote, now moves to the Senate Racing, Gaming and Wagering Committee for further review.

The legislation defines proxy betting as “an authorized sports bettor placing a sports wager on behalf of another person.” It requires operators to implement written monitoring systems capable of identifying this activity, along with account sharing, fraud, and wagering by individuals who are not permitted to bet.

Operators would gain authority to permanently close accounts linked to proxy betting or shared usage, classifying such individuals as prohibited bettors under the law. The bill also reinforces identity verification requirements, mandating that operators confirm a bettor is at least 21 years old and maintain formal procedures for verifying user identity.

Another component of the proposal focuses on risk evaluation. Operators would need to carry out detailed assessments examining patterns of gambling behavior to determine whether a customer may be vulnerable to harm. These assessments would categorize players into levels such as at-risk, elevated-risk, and high-risk bettors.

Each operator’s responsible gaming team would maintain a list of customers identified through this process. Individuals could be removed from the list following a reassessment. Regulators would also have the authority to request access to these lists, while operators remain restricted from selling any related data to third parties.

Proposed Rules Address Youth Access and AI Use

At the regulatory level, state officials have introduced additional proposals that expand protections around access to betting platforms and the use of technology. The New York State Gaming Commission released draft rules that include tighter identity verification methods, such as biometric authentication, device registration, and enhanced geolocation controls.

These measures aim to prevent unauthorized access to accounts and reduce instances where minors use existing accounts to place wagers. As reported by SBC Americas, officials acknowledged that underage individuals have found ways to bypass current safeguards, often by accessing accounts belonging to adults.

Governor Kathy Hochul highlighted the urgency of these updates, stating, “Mobile sports wagering is everywhere, enticing everyone — including our youth — to place bets without fully considering the consequences.” She added, “We need strong regulatory safeguards to prevent those under 21 from gambling, keep artificial intelligence from preying on gamblers, and require sports wagering operators take real action if one of their customers is showing signs of gambling harm.”

The proposed framework also introduces restrictions on how operators can use artificial intelligence. Betting platforms could be barred from using AI to tailor promotions or betting opportunities to individual users.

New monitoring triggers would be implemented to identify problematic gambling behavior. These include large deposits, repeated increases in betting limits, canceled withdrawal requests, and extended time spent wagering. When such patterns are detected, operators would be required to intervene, which could include account suspension and referrals to professional support services.

Market Growth Drives Regulatory Focus

New York’s betting market continues to expand at a significant pace. The state reported that online sports bettors wagered nearly $26.3 billion in 2025, marking an increase of approximately $3.5 billion compared to the previous year. The market currently includes nine licensed mobile operators, among them DraftKings, FanDuel, and BetMGM.

The legalization of sports wagering followed a 2018 U.S. Supreme Court ruling that allowed states to regulate the activity independently. Since then, New York has developed one of the largest sports betting markets in the country.

Officials have linked the scale of the market to the need for stronger controls. Gaming Commission Chair Brian O’Dwyer noted the widespread visibility of betting, stating, “No other form of gambling has pervaded our consciousness like sports wagering, and impressionable kids are constantly exposed to the practice.”

Additional proposals under consideration include stricter age assurance systems, limitations on account sharing through location tracking, and expanded reporting requirements for suspicious account activity. Operators may also be required to document and share information on at-risk players with regulators upon request.

While supporters of sports betting point to the tax revenue generated for state and local governments, critics continue to raise concerns about the potential increase in problem gambling, particularly among younger users.