The initiative follows on from Hochul’s address to legislators in January 2026, in which she instructed the commission to develop measures to prevent minors from accessing betting and to prevent the use of AI to influence players.
Biometric verification for every bet
The mandatory collection of biometric data when opening an account is one of the most radical measures. Before placing each bet, players will be required to verify their identity using biometrics. Existing users will be given 60 days to provide their data. Those who refuse will have their accounts closed.
In addition, operators will be required to use geolocation to detect suspicious activity. For example, the system should flag logins from unfamiliar devices or simultaneous access from two locations that the user could not physically have reached in time.
Separately, it’s proposed to give adults the option to block the use of their Social Security number for opening betting accounts. This’s a safeguard in case a child attempts to use a parent’s details.
Ban on AI targeting
The Commission is proposing to ban all licensed operators from using artificial intelligence for personalised betting offers and recommendations. The ban would cover all licensed gambling in the state, including sports betting, land-based casinos and horse racing.
AI is not prohibited for monitoring player behaviour with the aim of identifying signs of problem gambling. The ban applies only to the use of the technology to promote bets and keep players within the app.
When the operator is required to stop a player
Operators will be required to appoint a responsible gaming officer and respond to specific triggers. These include deposits exceeding $10,000 within 24 hours, account turnover exceeding $1 million over 90 days, three withdrawal cancellations within ten days, or a 50% increase in time spent on the app compared to previous weeks.
When a trigger is activated, a three-step protocol is followed. First, the player is sent information about responsible gaming tools. They must then watch an educational video. The third step requires a face-to-face conversation with a designated member of staff, and the account is blocked until this has taken place.
Fines for allowing underage players access
It is proposed to introduce a provision whereby any adult who allows a minor access to their account will be barred from participating in any form of gambling within the state. The ban will apply to lotteries, horse racing, visits to casinos and other forms of gambling.
What this means for the market
New York is the largest online betting market in the US. Regulations adopted here typically exert pressure on other states. A ban on AI-powered targeting will affect the business models of all major operators that actively use algorithms to retain players and increase the average bet size. Mandatory biometric verification before every bet is a measure that has no equivalent in the USA as yet. If the rules are adopted, New York will establish one of the strictest standards of player protection in the world.
