New York State Gaming Commission Will Eliminate Sports Betting Markets Susceptible to Manipulation

• The New York State Gaming Commission Chairman announced an evaluation of the state’s sports betting markets for manipulation susceptibility
• Chairman Brian O’Dwyer said the commission will evaluate all individual player prop markets in the state to determine if modification need to be made
• The commission is inviting all professional sports leagues to suggest limitations on sports betting markets offered in New York

The New York State Gaming Commission is undergoing an evaluation of certain New York sports betting markets that may be vulnerable to manipulation and will eliminate susceptible markets.

Chairman Brian O’Dwyer announced this week the New York State Gaming Commission has instructed its gaming division staff to examine all individual player prop markets that are game specific and certain single-game specific, multi-leg individual player parlay markets to determine if any are unprotected from sports betting manipulation. If certain markets are determined to be vulnerable to corruption, O’Dwyer said the commission will eliminate those markets.

“If we believe any wager is susceptible to manipulation, we will eliminate it, not restrict its offering. The problem may be proposition betting, inherent by its very nature, it is more susceptible to manipulation that betting on an outcome or a team as a whole. It may also be more attractive to underage and problem gamblers, especially coupled with parlay wagering. We will take that into consideration as well,” he said.

Sports Betting Scandals Lead to Evaluation

O’Dwyer said the decision to evaluate certain New York sports betting markets stems from the recent MLB and NBA sports betting scandals.

Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz were charged in a sports betting and money laundering conspiracy earlier this month, as the pitchers allegedly rigged pitches during the MLB season and shared information with corrupt sports bettors.

This followed news that Miami Heat guard Terry Rozier had been arrested in October through a federal investigation by the U.S. Attorney’s Office for the Eastern District of New York for potentially manipulating a 2023 game performance as part of an illegal sports betting ring. Shortly after, news also broke that current NBA coach and hall of fame member Chauncey Billups, plus former player and coach Damon Jones, had also been arrested for their roles in an illegal poker scheme involving New York families of the mafia.

Jones was included in both the poker and sports betting indictments.

While MLB and major U.S. sports betting operators recently agreed to limit betting amounts to $200 per user for certain micro-betting markets, O’Dwyer noted in New York “that discretion lies solely with us.”

“While limiting exposure is a good step, it may not be enough. It is not enough,” he said.

Asking For League Input on Sports Betting

The New York State Gaming Commission recently asked for input from the NBA and NBA Commissioner Adam Silver regarding the state’s basketball markets. In an email to the league, the state is open to modifying its sports betting offerings if the league requests for it to do so.

O’Dwyer said the commission will send letters to the more than 70 leagues in which the state features sports betting markets for limitation suggestions on wagers for their individual sports.

Last week, it was reported that the NFL is evaluating several wagering categories for manipulation. O’Dwyer noted that upon staff review of the 104 NFL prop bet types the state allows, only one could be “remotely thought to be within this concern.”

“I want to remind leagues that both New York law and regulations permit the leagues to request limitations or eliminations of specific wagering types,” he said.