New York Turns to Tech to Tighten Control Over Online Betting Markets

New York Gov. Kathy Hochul is proposing a series of mandates to restrict access to New York sports betting through biometric verification and limitations on artificial intelligence. The executive agenda directs the New York State Gaming Commission to evaluate tools such as facial recognition and thumbprint scanners. 

These measures aim to prevent individuals under 21 from opening New York sports betting accounts or accessing existing platforms through third parties, according to ESPN. Commission data indicates a rise in underage users utilizing accounts belonging to relatives or acquaintances. Under current rules, individuals who facilitate such access face permanent bans from sportsbook platforms. 

The proposal also targets the use of artificial intelligence in marketing. Gov. Hochul intends to prohibit operators from using AI to distribute personalized wager offers or New York sportsbook promos that encourage users to gamble beyond established limits. 

To address the resulting social impact, the plan includes legislation to mandate insurance coverage for gambling disorder treatment and the creation of a Gambling Health Institute. A proposed 10-year study would track state health trends and the efficacy of prevention programs.

"From day one, one of my highest priorities has been keeping kids and our most vulnerable safe in a rapidly changing digital world, and that includes risks posed by online gambling," Hochul told ESPN in a statement. "By engaging tools like biometric age verification, establishing stronger prevention and treatment and applying the same vigilance to online betting that we have brought to social media and AI we will build on our progress to protect New Yorkers from predatory and addictive technologies."

Sports betting in New York launched in January 2022, and in 2025, bettors wagered roughly $26.3 billion on sportsbooks. Trade organizations, such as the Sports Betting Alliance, have also expressed a willingness to coordinate with regulators on new identity verification technologies.

New York targets sweepstakes and virtual casinos

The push for stricter oversight follows a legislative ban on sweepstakes casino models that previously operated alongside New York online casinos. Gov. Hochul signed Bill S05935A into law last December to prohibit online sweepstakes games. 

There is no legal avenue for residents seeking real-money NY online casinos.

Sen. Joseph P. Addabbo Jr. introduced the legislation in March of last year, while Rep. Carrie Woerner sponsored a matching version in the Assembly. The measure moved rapidly through the legislature, securing a unanimous 141-to-zero vote in the Assembly on June 17 before reaching the executive desk in December.

This statutory ban reinforces enforcement actions led by Attorney General Letitia James. Last March, she issued cease-and-desist letters to several virtual casinos, arguing that the exchange of virtual coins for items of value violated the state constitution. Throughout 2025, the office of the Attorney General issued 26 such letters to operators in the sector.

The prohibition of these platforms aligns New York with a growing list of more than six states that have moved to block sweepstakes-based gaming. Regulators argue that these businesses often circumvent the tax and consumer protection requirements applied to traditional New York online casinos.