A new bill introduced in New York aims to cap sports betting and place restrictions on sportsbooks running ads.
Assemblyman Robert C. Carroll introduced bill a7962, which will now face discussion in the Assembly Racing and Wagering Committee.
The bill will set the maximum a customer can bet at a sportsbook at $5,000 over 24 hours. This would apply to on-site casino betting and online bets.
The bill also proposes to regulate betting ads and promotions. It puts forward a,
PROHIBITION ON CERTAIN ADVERTISEMENT PRACTICES INCLUDING ODDS BOOSTS OR SIMILAR OFFERS, INCLUDING ADVERTISING THAT CONTAINS THE PHRASES “BONUS”, “NO SWEAT”, “BONUS BET”, OR ANY OTHER SIMILAR TERM.
These measures will no doubt be opposed by the big sportsbooks in the state, such as FanDuel and DraftKings. New York announced record sports betting figures for FY2024-25, and the active sportsbooks in the state will be keen to keep those numbers growing.
Online sports betting customers in the Big Apple bet more than $22.6 billion last year. This topped the previous high in 2023 of $19.1 billion. This was the highest ever recorded by a US state.
Cap sports betting
Sportsbooks regularly allow players to self-impose limits and limit certain players, but a blanket rule to cap sports betting would be a huge blow to revenues. Massachusetts introduced a bill in January that set daily limits at $1,000 and a monthly limit of $10,000, but no state has implemented such measures.
Massachusetts has generally taken a tougher stance on gambling and is also investigating the practice of limiting certain players. The investigation aims to discover of sportsbooks are using limits to stop players winning consistently.
The sportsbooks claim that current caps on customers are related more to exploiting errors in the system rather than purely based on winning bets.
A cap on losing customers is unprecedented and is sure to face opposition from betting companies. A report released last week detailed the big sportsbooks regularly oppose any similar restrictions.
Banning bonuses
The bill also proposes to heavily limit sportsbooks from promotions and advertising. Banning terms such as bonus has also been opposed by sportsbooks in the past.
In Arizona, a bill aimed to stop companies from using the term “free bet” if a customer was required to make a deposit. Sportsbooks claimed this was common practice and pressured the state to continue allowing the practice.
They argued that such restrictions would turn players away from regulated betting to unregulated sources. Already, many alternative betting sites can offer more attractive bonuses and promotions. The unlicensed betting industry is also generating more revenue than licensed operators.
With record numbers betting in New York, perhaps legislators feel that it is necessary to cap sports betting before it spirals out of control. The state clamped down on sweepstakes casinos recently, and many operators exited the market this month.
The bill will go through discussion and votes in the assembly, and if passed there, move to the Senate. It seems an ambitious move, but time will tell whether lawmakers resist sportsbook lobby groups to approve the proposals.
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