In a statement released on February 2, the Attorney General cautioned New Yorkers about online platforms that present themselves as “prediction markets” or “event contracts” tied to political, sporting, or future events, but operate outside the oversight of the New York Gaming Commission. According to the alert, these platforms expose consumers to heightened financial risk due to the absence of regulatory safeguards.

“Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets,” said Attorney General James. “It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”

Reinforcing the Value of Regulation and Consumer Safeguards

Attorney General James underscored that properly licensed sports betting operators in New York are subject to strict regulatory requirements designed to protect consumers and ensure market integrity. In contrast, many prediction markets function as de facto gambling platforms without offering the protections New York residents “both deserve and expect.”

Key consumer safeguards required of licensed operators include funding and supporting responsible gambling programs, preventing underage gambling, enforcing restrictions on deceptive or predatory advertising, identifying players who may be struggling with gambling addiction, and providing self-exclusion tools. Regulated platforms are also bound by prohibitions on insider betting and must undergo regulatory scrutiny to ensure financial stability.

State officials emphasized that these measures are not only essential for consumer safety but also contribute to a sustainable and trustworthy gambling ecosystem.

Financial Risks Draw Growing Attention

Beyond regulatory concerns, the alert notes that financial institutions have begun reporting increased risks linked to prediction markets, including excessive credit use and rising loan defaults. These trends reinforce the importance of consumer awareness and responsible participation in any form of wagering.

To protect themselves, New Yorkers are encouraged to verify whether a platform is licensed by the New York Gaming Commission before placing any bets. If a platform lacks authorization, it may be operating illegally within the state. Consumers are also advised to avoid wagering funds they cannot afford to lose, recognizing that unregulated markets offer no guarantees regarding returns or access to deposited money.

Promoting Responsible Gambling Practices

The Attorney General’s office also highlighted resources available to individuals who may be experiencing gambling-related harm. The New York State Office of Addiction Services and Supports (OASAS) recommends setting clear limits on time and money spent gambling and avoiding alcohol or substance use while betting online.

“The ease of online betting may cause consumers to forget that they are gambling with real money,” the alert notes, warning that unchecked behavior can lead to serious financial consequences. Attorney General James encouraged anyone affected by problem gambling to seek professional assistance.

Through this alert, New York authorities reaffirmed their commitment to consumer protection, responsible gambling, and the enforcement of state gambling laws, while encouraging residents to engage only with licensed and regulated operators.