Recently, the New York State Gaming Commission has intensified its scrutiny of licensed operators, mainly targeting the participation in prediction markets, as this could affect their qualifications in the strictly regulated sports betting environment. The chairman, Brian O'Dwyer, emphasized in the meeting on November 18th that it is necessary to comprehensively assess the challenges these markets pose to industry integrity, and licensing policies may be adjusted accordingly.
Background of Scrutiny and Challenges of Prediction Markets
The New York State Gaming Commission found that prediction markets like those planned by FanDuel and DraftKings, as well as collaborations between platforms like Underdog and Crypto.com, could pose risks to licensed institutions. O'Dwyer pointed out that, frankly, these markets directly challenge the authority of the commission, and it is necessary to review whether existing licensing qualifications are affected. The commission has initiated a detailed assessment and is considering enforcement actions, such as the cease and desist order issued to Kalshi in late October, which has led to legal disputes.
Regulatory Adjustments for Special Bets
At the same meeting, the commission also revisited the rules for special bets, especially after scandals involving NBA and MLB player betting. Staff reviewed 104 NFL special bets and found only one with potential issues, but have consulted over 70 leagues. O'Dwyer stated that limiting bets is a good thing, but it might not be enough; if bets are easily manipulated, they will be directly canceled. The commission is particularly concerned about the risks to minors and problem gamblers, indeed, this task must be done carefully.
Social Risks and Enforcement Measures
Prediction markets also involve politically sensitive content, such as predictions about whether New York City Mayor Zolan Mumdani will be expelled. O'Dwyer criticized this as racially discriminatory and socially harmful. He also pointed out that operators lack measures to prevent underage gambling, hence the commission is actively considering whether to revoke licenses due to participation in prediction markets. Overall, the commission aims to reduce manipulative practices and maintain industry integrity.
————
This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
