New York Legislature Addresses Sports Betting Bills

The U.S. retail and online sports betting industry is finally reaching the point of maturity. At the state level, many states are beginning to assess how the industry is holding up. That is causing a few states to start taking a serious look at tightening up their regulations.

In New York, the state legislature has proposed a few bills that could make a material impact on how retail and online sports betting operators operate. Let's take a look at the legislation that is being considered.

About Assembly Bill A11414

Assembly Bill A11414, sponsored by Assemblymember Jordan Wright, looks to adjust two things: how sports betting operators settle injury-affected prop bet wagers, and how said operators advertise their wagering products in public spaces.

In the bill, Wright is referring to it as a “fair play policy.” It calls on operators to adopt fair and consistent policies when a player listed on a prop bet gets injured during the game. It's worth noting that it's seemingly unfair for a bettor to lose their money because the player they wagered on was unable to finish the game.

Currently, each operator is allowed to set their own policies, and the differences between operators vary significantly. The bill is calling on operators to come together and standardize practices. The New York State Gaming Commission would be tasked with writing the rules and making sure that all licensed operators are following them.

The rules will likely call for operators to cancel and refund such bets. If that rule is put in place, operators will have to automatically refund the amount without bettors having to make requests. This is being called the "automatic trigger requirement."

Addressing Advertising Legislation

While Assembly Bill A11414 addresses advertising issues, there are more proposals that are taking aim at the same concerns.

State Sen. Nathalia Fernandez has introduced two such bills to the Senate floor. The first, S10400, seeks to prohibit the posting of sports betting billboards on outdoor facilities if they are visible to the public. The other bill, S10401, would require advertisers to replace expired sports betting advertisements with public service announcements.

State Sen. Andrew Gounardes has also chimed in with Bill S10470. This bill aims to prohibit online sports betting on New York college campuses. Similar legislation has already been passed in Illinois, Massachusetts, and Ohio, with the goal of shifting the focus away from sports betting and back toward academics.

There are two other bills worth mentioning. Bill A9343 seeks to ban live, in-play wagering, also referred to as micro-betting. Bill A7962 would place a cap on how often bettors can add funds to their accounts. In addition, the bill would restrict when retail and online operators are allowed to run advertisements.

For the record, sports betting went live in New York in 2022. Since then, the state has become the national leader in sports betting handle. The time for legislative change could be now.