New York Governor Kathy Huchal has unveiled a plan to reduce underage and problem gambling. The plan aims to prevent minors from wagering online, stop operators from using AI to target users, and increase the checks on potential problem gamblers.
It follows New York’s Attorney General Letitia James filing a lawsuit against Valve, alleging the company is encouraging minors to gamble through loot boxes in its games.
To prevent underage gambling, Huchal said she will force operators to conduct more stringent verification checks. This includes forcing gambling companies to verify users using biometric data, not only when they open an account, but also before each bet.
In addition, adults can request that their details not be used to open betting accounts to prevent children from using their parents’ data.
“Mobile sports wagering is everywhere, enticing everyone — including our youth — to place bets without fully considering the consequences,” Governor Hochul said in a press release. “We need strong regulatory safeguards to prevent those under 21 from gambling.”
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In addition to curbing underage gambling, Hochul said she also wants to provide more protections for gamblers. New Yorkers are the biggest bettors in the country, wagering over $26 billion on sports last year.
Major sportsbooks DraftKings and FanDuel are facing new lawsuits over accusations that they use algorithms to target gamblers. It has been suggested that over 70% of DraftKings’ promotional spending is determined by AI.
This leads to its algorithms targeting users when they are most vulnerable, such as late at night or after big losses, according to the lawsuit.
Hochul proposes a ban on operators “from using AI to offer personalized promotions or suggested wagers or wager amounts to a customer.”
More Checks On Gamblers
In addition, the New York Gaming Commission wants betting companies to actively prevent users from gambling beyond their limits.
The Commission said it is considering “a comprehensive responsible gaming proposal from New Jersey that would establish patron activity triggers for operator intervention”.
These triggers include:
- Deposits exceeding $10,000 in a 24-hour period
- Deposits exceeding $100,000 in a 90-day period
- Accessing the self-exclusion request page, but not completing the process three or more times in a 30-day period
- Cancelling withdrawal requests three times in a 10-day period
- Depositing funds from more than two sources within a 24-hour period
Gaming Commission Chair Brian O’Dwyer said, “No other form of gambling has pervaded our consciousness like sports wagering, and impressionable kids are constantly exposed to the practice. Per her direction, we have identified additional ways to protect our youth, help those who need it at the point of crisis, and keep legalized, regulated gaming safe for all New Yorkers.”
A bill has also been proposed in New York that would see all live betting banned. In-play bets make up the majority of esports gambling, accounting for over 70% of wagers across major games.
The wide-ranging reforms to the legal sports betting market are only suggestions for now. O’Dwyer added, “We look forward to hearing from the public on these important proposals.”