New York State Assembly Bill May Affect State Sports Betting

A bill introduced to the New York State Assembly aims to transform the state's best sports betting sites by imposing stricter financial and advertising regulations on sportsbook operators.  Assembly Bill A7962, sponsored by Assemblymember Robert Carroll, was introduced to the Assembly Committee on Racing and Wagering and establishes a number of provisions that would impact online and in-person sports betting operators.

At the center of the proposal is a cap on daily deposits and bets for New York sports betting sites. Under the bill, if enacted, it would prohibit individuals from depositing more than $5,000 into their sports betting accounts within a 24-hour period.

In addition to daily transaction limits, the bill also offers protections when a user's total deposits exceed $2,500 during the account's lifetime. When this limit is met, New York sports betting apps must suspend wagering until the account holder verifies that they have reached this limit.

At that point, players would be requested to either close their accounts entirely or apply further responsible gaming limits. This obligation enhances transparency and encourages gamblers to monitor their spending more closely.

Assembly Bill A7962 also targets the marketing methods of sportsbook operators. Most of the bill is devoted to advertising restrictions, specifically banning operators from promoting offers such as "bonus," "bonus bet," and "no sweat." All three are common phrases that are found within New York sportsbook promos.

The bill looks to eliminate what it characterizes as misleading or manipulative terms typically used to entice new and existing customers to place additional bets.

Betting ads

Furthermore, the bill also strongly restricts when and where sportsbook advertisements can appear, including TV broadcasts. Adverts would be prevented from 8 a.m. to 10 p.m. local time, which would slash the exposure interval for ads exponentially.

The legislation also advocates for a ban on odds boost advertisements, which are mostly applied by most sportsbooks to motivate customer activity. Due to the challenge of responsible betting, legislators and regulators in several states have become increasingly scrutinized of such promotional channels.

A similar bill, S1550/A1118, was introduced by New York lawmakers last year. It proposed that operators include warnings about the associated risks of gambling in any state advertisements. 

Assembly Bill A7962 remains in the Assembly Committee on Racing and Wagering. If it clears the committee, it will proceed to the Senate Committee and then to the respective Floor Calendars of both houses. Final approval would require the signature of the Governor of New York.

The bill arrives as New York, which had $2.14 billion in gross gaming revenue last year, closely monitors the explosive growth of its sports betting market, which has seen tremendous expansion since legalization. With growing concerns over problem gaming and lingering questions regarding the high-pressure marketing methods used by sportsbooks, lawmakers are coming under increasing pressure to strike a balance between economic benefits and consumer protection.

If passed, A7962 would place New York among the most restrictive U.S. states in regulating daily betting limits and advertisement regulation.