NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9579
SPONSOR: Woerner TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to establishing consumer-protection standards for high-value
customer programs offered by mobile sports wagering operators
PURPOSE OF BILL:
This legislation is intended to strengthen consumer protections in New
York's growing mobile sports wagering markets, Specifically, the bill
establishes a minimum age of 25 for participation in VIP or high-value
customer programs; requires affordability and financial-sustainability
checks before granting VIP or high-value status; and prohibits risk-pro-
moting incentives, including rewards linked to losses, escalating wager-
ing, or behavior that encourages problem gambling. The goal of this
legislation is to mitigate gambling-related harms while maintaining a
safe, legal framework for responsible gaming,
SUMMARY OF PROVISIONS:
Section 1 sets a minimum age requirement so that no person under 25 may
participate in any VIP or high-value program, and requires mobile sports
operators to verify that bettor's wagering is sustainable and affordable
before granting VIP status. The bill prohibits risk promoting incentives
such as bonuses, rewards, or other incentives tied to losses, chasing
behavior, or escalating wagering, and prevents a person who has been on
any state or private self-exclusions list from being eligible for any
VIP program for at least two years after that person's self-exclusion
period has expired. It also prohibits any person employed by or affil-
iated with a mobile sports wagering operator from receiving any remuner-
ation tied to the amount and frequency of wagers. The bill requires
mobile sports operators to maintain written policies and assign respon-
sible employees to oversee compliance with the above requirements and
gives power to the New York State Gaming Commission to adopt regulations
specifying detailed implementation standards, reporting requirements,
and audit procedures.
Section 2 sets forth the effective date.
JUSTIFICATION:
This bill recognizes that younger adults are more susceptible to
gambling-related harm and should not be targeted for intensified market-
ing or special-treatment programs, Many operators offer loyalty or VIP
programs to encourage continued play, but evidence shows these programs
often target younger adults, promote excessive wagering through bonuses
and escalating rewards, and contribute to problem gambling, addiction,
and financial distress. Frequent gambling and wagering large amounts are
consistently associated with increased risk of harm. This legislation
aligns New York with international best practices, particularly those
adopted by the UK Gambling Commission. In the UK, safeguards for VIP or
high-value customers include age-based protections, affordability
checks, limits on risky incentives, and requirements for operators to
use data to identify potentially. harmful gambling behavior. These meas-
ures, endorsed in the UK by industry leaders such as Flutter, demon-
strate that effective regulation can mitigate harm while preserving a
lawful, well-monitored market through reporting, audits, and enforcement
authority. Rather than banning VIP programs outright, the bill regulates
them to allow legitimate loyalty benefits while reduc ing exposure to
high-risk incentive structures. This approach supports a safer gambling
environment, protects vulnerable populations, and establishes clear
regulatory standards that reduce litigation and compliance risk
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This bill shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9579
IN ASSEMBLY
January 21, 2026
___________
Introduced by M. of A. WOERNER -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to establishing consumer-protection standards for high-value
customer programs offered by mobile sports wagering operators
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1367-a of the racing, pari-mutuel wagering and
2 breeding law is amended by adding a new subdivision 5-a to read as
3 follows:
4 5-a. (a) As used in this subdivision, "high-value customer program"
5 means any "VIP", "elite", "preferred", "high-value", or similarly-desig-
6 nated program that provides enhanced incentives, bonuses, rebates, dedi-
7 cated account management, or other special benefits tied to wagering
8 activity.
9 (b) No mobile sports wagering operator, or any affiliate or agent
10 thereof shall offer, enroll, or permit any person under twenty-five
11 years of age to participate in any high-value customer program.
12 (c)(i) Prior to enrolling any person in a high-value customer program,
13 a mobile sports wagering operator shall conduct an affordability review
14 to determine whether the person's wagering activity is affordable and
15 sustainable, and does not pose a risk of gambling-related harm.
16 (ii) Such review shall include, at a minimum: identity and age verifi-
17 cation; know-your-customer due-diligence; verification of income or
18 financial capacity sufficient to support wagering levels; review of
19 wagering patterns for indicators of harm; whether such person has ever
20 been on any state or private gambling self-exclusion list; and any other
21 factor required by the gaming commission.
22 (iii) A person who has been placed on any state or private gambling
23 self-exclusion list shall not be eligible for any high-value customer
24 program for at least two years after such person's self-exclusion period
25 has expired.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14401-01-6
A. 9579 2
1 (iv) Every mobile sports wagering operator shall maintain written
2 records of such reviews and shall re-evaluate each enrolled person at
3 least quarterly, or more frequently if indicators of harm appear.
4 (v) A mobile sports wagering operator shall deny or suspend high-value
5 customer status to any person who fails to provide information necessary
6 to complete the review required pursuant to this subdivision or if such
7 review indicates material risk of harm.
8 (d) No mobile sports wagering operator shall offer or provide, to any
9 person with high-value customer status, any incentive, reward, rebate,
10 bonus, or promotion that:
11 (i) is conditioned upon net losses, escalating losses, or wagering at
12 levels inconsistent with the affordability review;
13 (ii) encourages continuing to bet or increasing the size of a bet to
14 recoup losses from previous bets, increased frequency of play, or wager-
15 ing beyond preset limits;
16 (iii) offers gifts, hospitality, or other benefits conditioned on
17 reaching higher loss or spend thresholds; or
18 (iv) is otherwise determined by the gaming commission to present an
19 unreasonable risk of gambling-related harm.
20 (e) No person employed by or affiliated with a mobile sports wagering
21 operator may receive any remuneration based upon the number of bets
22 placed or the amount wagered by a person enrolled in a high-value
23 customer program.
24 (f) Mobile sport wagering operators shall maintain written policies
25 governing the operation of high-value programs, including eligibility
26 criteria, responsible-gaming safeguards, and internal controls. Such
27 programs shall be overseen by an employee holding a position approved by
28 the gaming commission, who shall be responsible for compliance with this
29 subdivision and all regulations promulgated hereunder.
30 (g) The commission shall promulgate rules to implement the require-
31 ments of this subdivision, including detailed affordability-check stand-
32 ards, reporting requirements, auditing procedures, and limitations on
33 incentives or marketing practices.
34 § 2. This act shall take effect immediately.
