Senate Bill S8627

                                 
BILL NUMBER: S8627

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to enacting the "gamblers unfairly abused by reward dynamics
(GUARD) act"

 
PURPOSE:

To reduce gambling-related harm and promote responsible industry conduct
by prohibiting sports betting companies from offering rewards, bonus
bets, or similar inducements to individuals for the purpose of opening
or reactivating online sports wagering accounts, or for removing self-
imposed gambling limits on online sports platforms.

 
SUMMARY OF PROVISIONS:

Section 1 Names the bill the gamblers unfairly abused by reward dynamics
(GUARD) act.

              

Section 2 adds a new subparagraph (xvi) to the racing, pari-mutuel
wagering and breeding law to establish an additional condition with
which a mobile sports wagering operator must comply. Under the subpara-
graph, a mobile sports wagering operator is prohibited from promoting,
offering, or providing any form of monetary incentive to any person for
the purpose of inducing or encouraging that person to:

(A) become a new account holder;

(B) recruit or refer a new account holder;

(C) place an initial bet;

(D) re-activate or re-open an expired or lapsed account;

(E) place a bet after a period of ninety (90) days without betting
activity; or

(F) modify any self-exclusion or self-imposed gaming limit set through
the mobile operator's platform.

Section 3 sets the effective date.

 
JUSTIFICATION:

Online sports betting in New York has experienced explosive growth since
it was legalized in 2022, and the monthly amount wagered in the state is
now consistently higher than anywhere else in the country.  New Yorkers
cannot watch a professional or collegiate sporting event, listen to the
radio or podcasts, or search the internet without being bombarded with
advertisements from the multitude of sports betting companies. These
advertisements often include an incentive to induce viewers to begin
making wagers, invite friends to make wagers, or to open an account.

This legislation prohibits the use of such inducements such as: "bonus
bets," "free bets," and "referral bonuses" due to their impact on induc-
ing New Yorkers to gamble. These inducements are widely used in gambling
to attract and retain players. Research consistently shows that these
promotional tactics encourage addictive gambling behaviors, risk-taking,
and impulsive betting, especially among vulnerable groups such as young
people and those with a history of problem gambling. The incentives
targeted by this measure play a significant role in encouraging rapid
and impulsive engagement with gambling, often at moments when individ-
uals are particularly vulnerable to developing harmful behaviors.

The prohibition intervenes at the earliest stage of the gambling jour-
ney, reducing the likelihood of harm before it develops. It also ensures
that individuals who indicate a desire not to gamble, whether by limit-
ing their betting activity or by setting personal restrictions, have
those choices respected. Crucially, it provides important safeguards for
people recovering from gambling addiction.

Promotional offers can act as powerful triggers for relapses, pulling
individuals who are actively trying to reduce or stop gambling back into
harmful patterns. By removing these inducements, the legislation
protects against such exploitation and supports recovery efforts. It is
carefully structured to prevent the entrapment of new or at-risk
gamblers while preserving the freedom of individuals who choose to
gamble recreationally without being subjected to manipulative induce-
ments.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.