The New York State Gaming Commission voted unanimously on Friday to advance revised rules that would bar mobile sports betting operators from using artificial intelligence to tailor promotions and wagering recommendations to individual customers.
The ban covers AI, machine learning and algorithmic profiling used to personalise bonuses, odds, betting limits and betting recommendations drawn from customer data. It also reaches the offer of specific bets, bet types or amounts, along with promotions aimed at raising a player's spending or engagement. Operators and their affiliates would be barred from analysing user behaviour for targeted offers. Customers who give explicit consent, and pari-mutuel horse racing, sit outside the rule. The commission modelled it on a New Jersey measure that sets limits on the technology rather than banning it outright.
NYSGC advanced a second proposal requiring the identification of at-risk players. Every licensed venue would have to appoint an employee who works with signs of problem gambling. Chairman Brian O'Dwyer said the industry has to solve the migration of restricted customers between operators, or the regulator will take hard measures itself.
Both proposals belong to Governor Kathy Hochul's programme against underage betting and problem gambling, set out in March. Nine operators are licensed in the state: Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, Resorts World Bet, Rush Street Interactive and theScore Bet. New York takes 51% of mobile GGR, more than $1 billion in taxes a year. The rules face another round of public comment before a final vote.
