New York Legislator Files Bill to Prohibit Online Sports Betting Limiting Practices

• A New York Assembly Member has filed a bill to prohibit sports betting operators from limiting customers
• If approved, the legislation will prohibit from “limiting the size or frequency of deposits or wagers”
• However, users exhibiting problem gaming behavior will be eligible to be limited

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One Empire State legislator is hoping to prohibit the practice of New York online sports betting users being limited by licensed operators.

New York Assembly Member Alex Bores (D-73) filed A09125 last week, which will prohibit licensed New York sports betting operators from “limiting the size and frequency of deposits or wagers” of authorized sports bettors.

However, users exhibiting signs of problem gaming behavior or suspicious betting activity can still potentially be limited under the legislation.

No More Limiting in New York Due to Success

Bores’s bill will amend the racing, pari-mutuel wagering, and breeding law if approved. New York’s legislative session has concluded until January, but bills filed in 2025 will roll over into the 2026 portion of the state session.

If approved, online sports betting platforms “shall be prohibited from limiting the size or frequency of deposits or wagers of authorized sports bettors” if a sports betting user experiences “financial benefit” as a result of their wagering activity.

While sports betting operators have not denied the practice of limiting customers, reasons for limitations have not been publicly discussed. One of the prevailing opinions is that users who consistently beat sportsbooks have heavier limitations placed on their accounts compared with users who consistently lose money.

Bores’s bill, if approved, will prohibit operators from punishing a customer who wins too much on their platform.

However, the legislation will allow a sports betting operator to place limits on customers if their sports betting activity is deemed “suspicious” or their behavior indicates they have a gambling disorder.

Suspicious betting behavior is defined as “unusual wagering activity that cannot be explained and is indicative of match fixing, the manipulation of an event, misuse of inside information, or other prohibited activity” by the racing, pari-mutuel wagering and breeding law 1367.

Additionally, a user is indicated as having a “gambling disorder” under the definition of article one of the New York mental hygiene law, which states the following:

“”Gambling disorder” means an addictive disorder, as defined by the most recent edition of the diagnostic and statistical manual of mental disorders (DSM), published by the American Psychiatric Association, characterized by repeated problematic gambling behavior which causes significant problems or distress. Unless otherwise provided, for the purposes of this chapter, the term gambling disorder shall mean and include compulsive gambling, pathological gambling or problem gambling.”

If a limit is imposed on a customer, the bill requires an operator to do provide electronic notice of the decision within 24-hours and include the following information:

• The specific manner in which the user is being restricted
• The duration of the restriction
• An explanation of why they are being restricted, including if its due to suspicious gambling behavior or problem gambling
• A problem gambling hotline number if the restriction is due to problem gambling

Correlation Between Winning and Limiting

The potential New York legislation coincides with recent findings from the Massachusetts Gaming Commission.

The commission revealed findings from limitation data provided to them by the state’s eight licensed sports betting operators. The report concluded that a very low number of accounts in the commonwealth are subjected to limitations, but a correlation does exist between winning behavior and restrictions.

Carrie Torrisi, sports wagering division chief of the MGC, said there is a clear correlation between a Massachusetts sports bettor who “consistently beats the closing line” and having their limits increased, while those who consistently lose have their limits decreased.

So what does this mean? It means that for Massachusetts sports betting customers who consistently win money on a sports betting operator platform and beat a closing line, they are more likely to face harsher betting limitations compared with a customer who does not consistently beat a closing line.

“To summarize, we sought to answer the question of whether data from Massachusetts operators show that players who demonstrate a tendency to win have their limits decreased, and players who demonstrate a tendency to lose have their limits increased, and the answer to that question is yes,” Torrisi said.

The gaming commission members suggested several solutions to this correlation, one of which would be a requirement for operators to notify each user of any limitation being placed on their account and the reason for doing so.