NYS Gaming Commission Warns of Illegal Gambling Risks

The New York State Gaming Commission reminded New Yorkers about the significant risks of unlawful online gambling – including prediction markets and offshore operators – and the benefits of the regulated gambling market.

The Commission launched on.ny.gov/RiskyBet to educate New Yorkers about unlawful gambling and the tell-tale signs of a risky wager.

Individuals who are of-age and wish to legally wager online in New York State have several options:

• Sports wagering with licensed operators
• Advanced deposit wagering on horse racing by licensed providers
• Online raffles by authorized charitable organizations
• Interactive fantasy sports by licensed providers
• The purchase of lottery tickets through the New York Lottery’s subscription program or from licensed lottery sales agents through licensed online couriers

Everything else—online casinos (including ones that claim they are sweepstakes), prediction markets, offshore sites, etc. – is unlawful in New York State. New Yorkers are strongly encouraged to stay away from these bets. These operators, despite any claims they may make, are not required to have certain patron protections, safeguards against underage play and gambling harms, approved house rules or wager integrity controls in place.

In her 2026 State of the State address, Governor Hochul directed the Commission to take appropriate action to ensure young people are not downloading betting apps, creating accounts or using others’ accounts. The unlawful gambling market, which is beyond the Commission’s jurisdiction, is readily available to underage individuals and has no effective responsible gaming measures in place, among other shortcomings.

Commission Chairman Brian O’Dwyer said, “Legitimate, lawful, regulated gaming – of which there are ample options – has fair wagers, player safeguards, responsible gaming measures, and societal benefits. Whereas the unlawful gambling market rips off unsuspecting individuals – including youth – who think they are making legitimate wagers to the benefit of faceless, untraceable operations. While the two may sometimes look similar, it’s clear which one is a smart wager and which one is a risky bet.”

The unlawful gambling market:

• Provides No Societal Benefit: Unlike regulated gaming, the unlawful market contributes no gaming tax revenue to important causes and instead siphons revenue from schools, local governments, and charitable organizations across the state, including resources to combat gambling harms.
• Enables Youth Access: The minimum age to wager on prediction markets and many offshore platforms is 18 instead of 21, the legal age to place a sports wager in New York State. The unlawful market has no safeguards to prevent underage use, which leaves youth susceptible to the very real dangers of gambling harms. These platforms do not comply with New York requirements to avoid marketing to underage individuals, such as on college campuses.
• Fails to Protect Consumers: Unlawful operators have little to no recourse or customer service to resolve disputes. They permit predatory market makers to profit off patrons of all ages.  Such operators may have no required anti-money laundering (AML) or know-your-customer (KYC) controls in place, leaving patrons’ funds, activities, and information at-risk. Patrons may be unwittingly supporting organized crime through making bets.

The risks of the unlawful market:

• The unlawful operators’ house rules may not be reviewed by any regulator. This makes it easy for bad actors to take advantage of unsuspecting individuals.
• Some unlawful operators permit dubious, dangerous and reprehensible wager options, including bets on political violence and war. They may allow insider trading, making your wager unfair when measured against market participants who possess nonpublic information that bears on the wager.
• Also, a bettor may be left with no recourse if the operator declines to pay advertised winnings or resolves an event contract in a way that contradicts the actual or perceived outcome.
• Unlawful operators advertise and market to those who have voluntarily excluded from all forms of gambling in New York State. They also advertise on college campuses, which is prohibited in New York.
• With no controls, restrictions, or meaningful oversight, the unlawful market creates an environment where unregulated actors can rip-off unsuspecting bettors, causing significant unforeseen losses.

New Yorkers with concerns regarding possible unlawful gambling can take action:

• Submit a complaint with the New York State Gaming Commission
• File a complaint with the New York State Attorney General
• Submit a crime tip to the New York State Police

This latest effort follows the Commission’s introduction of sweeping measures that would prevent youth from gambling online, bar sports wagering operators from using AI to target bettors, establish activity triggers that would require operators to check on their patron, and establish other innovative efforts to protect New Yorkers who are legally able to gamble from potential harms.

The Commission works closely with the New York State Office of Addiction Services and Supports (OASAS) and the New York Council on Problem Gambling as part of New York’s Responsible Play Partnership (RPP). The RPP brings all stakeholders together to address problem gambling, including bridging the gap between gaming facility operators and problem gambling treatment providers. The RPP works to ensure that all gaming entities in the state comply with all rules and regulations and provide access to help for individuals who need it. The RPP continues to work to advance New York’s ongoing commitment to prevent and treat problem gambling.

Those seeking help can visit NYProblemGamblingHelp.org or call New York State’s confidential HOPEline at 1-877-8-HOPENY (1-877-846-7369) or text HOPENY at 467369.