New York regulator lists AI wagering rules on 9 October meeting agenda

The two proposals were on the agenda of the NYSGC meeting of 9 October 2026, listed under rulemaking as "Use of artificial intelligence for wagering purposes" and "Safeguards for at-risk mobile sports wagering patrons".

The AI rules would apply to sportsbooks, their affiliates and their vendors.

What happened

CDC Gaming Reports described the outcome.

Under the AI proposal, sportsbooks, their affiliates and vendors would face limits on analysing customer data to personalise the following through AI, automated decision systems, algorithmic profiling, machine learning or generative systems:

• promotions and bonuses.
• odds and betting limits.
• messages.
• product recommendations.

The measure would also bar operators from suggesting specific wagers, wager types and amounts, and from running promotions designed to raise spending, revenue or engagement. It would not apply to customers who consent. Pari-mutuel horse racing is exempted where a dedicated app suggests wagers, provided the patron first opts in.

Both proposals form part of Governor Kathy Hochul's State of the State 2026 programme, announced in March, which targets underage gambling, marketing to at-risk customers and gambling addiction.

"The industry is on notice by me and this commission that they need to solve this problem," O'Dwyer said. He added that the commission would act itself if the industry did not.

CDC Gaming Reports put the tax on mobile gross gaming revenue at 51%.

Why it matters

Licensed operators in New York, and the affiliates and vendors working with them, are likely to need to check whether any CRM, bonus-targeting, odds-personalisation or recommendation tools rely on automated analysis of customer data. They are also likely to need to check how consent is captured, since the proposal exempts consenting customers. Because the draft names affiliates and vendors alongside sportsbooks, third-party marketing and tech partners could face the same limits as operators.

The proposal as described would also affect promotion design. A ban on offers aimed at raising spending or engagement could change how bonuses are structured and who receives them. Operators will want to see how the revised text defines the covered systems before committing to product changes.

Suppliers that build personalisation or recommendation engines for New York sportsbooks may need to review whether those products can operate without automated profiling, or only for customers who have consented. Affiliates that pass promotions to licensed operators could find their marketing arrangements questioned if the rules cover them. Compliance teams may also want to track how the commission's stated readiness to act itself shapes the timing of any changes.