New York Gov. Kathy Hochul Signs Law Requiring Addiction Warnings On All Gambling Ads

New York Dem. Governor Kathy Hochul has officially signed a new bill aimed at addressing the addictive nature of gambling by requiring advertisements for gambling and sports betting to include clear warnings about the potential dangers of addiction. The new legislation, S1550/A1118, builds upon previous laws by extending the requirements to mobile sports betting ads, ensuring they are subject to the same standards as other gambling advertisements.

This step is part of a broader effort to protect New Yorkers from the harmful effects of gambling addiction, which continues to rise, especially with the increasing popularity of online sports betting platforms like FanDuel and DraftKings. In her statement, Governor Hochul emphasized the importance of promoting responsible gaming while ensuring that New Yorkers are informed about the risks.

“Protecting New Yorkers from the dangerous and addictive effects of problem gambling and sports betting is vitally important for the prosperity of our great State,” she stated. “I’m confident that with the signing of this new bill, New Yorkers will have easier access to the safety resources they need to better protect themselves from the grips of addiction.”

New Requirements for Gambling Ads

The newly signed legislation mandates that all gambling and sports betting advertisements must include a warning about the risks of gambling addiction, in addition to the problem gambling hotline number already required by law. The State Gaming Commission will now collaborate with the Commissioner of Addiction Services and Supports to ensure the appropriate messaging is included in all gambling-related ads. This collaboration is meant to heighten awareness and provide support to those vulnerable to gambling addiction.

State Senator Leroy Comrie, a strong advocate for the bill, highlighted the importance of making sure that users are fully informed about the risks of gambling. He noted that while the state does benefit financially from gambling revenues, ensuring public safety and well-being is equally important. “It’s essential that users are informed about the risks of addiction and know where to seek help if needed. While revenue for the State is certainly important, promoting responsible gambling and safeguarding our communities is also critical,” Comrie said.

Addressing Mobile Sports Betting and Addiction

The rise of mobile sports betting, particularly among young adults, has presented new challenges in preventing gambling addiction. Since its legalization in New York in 2022, mobile sports betting apps have surged in popularity, providing users with the ability to place bets in seconds from their phones. However, this convenience has also led to an increase in problem gambling complaints, especially among individuals under 25 years old.

Chinazo Cunningham, Commissioner of the State Office of Addiction Services and Supports, underscored the importance of continued education about the risks of gambling. “As more people have access to gambling, it’s vital that we continue our efforts to educate New Yorkers about the risks associated with problem gambling and where they can find help,” Cunningham said. She praised the new legislation as an important step in safeguarding vulnerable individuals from the potentially devastating effects of gambling addiction.

Assemblymember Clyde Vanel, who sponsored the bill in the state Assembly, echoed these sentiments, emphasizing that the legislation strengthens the protections for New Yorkers across the state. “With this new law, we are strengthening the protection of New Yorkers across our State,” Vanel said. He also highlighted that these changes will help promote responsible gaming practices while providing necessary support to those who need it.

A Growing Concern in the Industry

The legislation comes as the fantasy sports industry and its intersection with gambling continue to evolve. Apps like DraftKings and FanDuel have increasingly blurred the lines between fantasy sports and gambling, particularly with parlay wagering. Parlay betting allows users to combine multiple bets into one, offering short-term gratification and the potential for quick wins, which can exacerbate problem gambling behaviors.

The bill also targets parlay-style wagering, which has previously operated in a legal gray area, allowing companies like Underdog Fantasy and PrizePicks to offer betting options to users under 21, according to the Times Union. These companies have defended their practices by claiming that their fantasy picks constitute games of skill, not traditional gambling. However, these parlay bets often mirror those found on regulated sports betting platforms, raising concerns about their impact on problem gambling.

Stephen Master, professor of sports and media at New York University’s Stern School of Business, cited by Spectrum News 1, said that big companies such as teaches courses on DraftKings and BetMGM, companies which he has been working with and that are directly impacted by this bill, will definitely comply with the new law as they want to continue to operate in the state of New York.