New York Gaming Commission Cautions Public About Prediction Markets and Sweepstakes Casinos
Posted on: May 11, 2026, 03:29h.
Last updated on: May 11, 2026, 03:29h.
- The New York State Gaming Commission is urging the public to only bet with a licensed operator
- State gaming regulators say prediction markets shouldn’t be used to trade on sports events
The New York State Gaming Commission is reminding consumers to only engage in lawful, regulated online gambling licensed by the state.
The state gaming regulator has launched a website advising the public that “Unlawful Gambling = Risky Bets.”
The initiative is meant to encourage New Yorkers to refrain from gambling on so-called sweepstakes casinos and offshore gambling websites and apps. The NYS Gaming Commission also wants the public to stay away from federally regulated prediction markets that offer trading involving sports outcomes.
“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,” said Commission Chair Brian O’Dwyer.
While the two may sometimes look similar, it’s clear which one is a smart wager and which one is a risky bet,” O’Dwyer continued.
New York’s legal online gaming options include online sports betting, advanced deposit wagering on horse racing, charitable online raffles, interactive fantasy sports, and lottery purchases.
Commission’s Unregulated Gaming Claims
O’Dwyer says the New York State Gaming Commission was tasked by Gov. Kathy Hochul (D) in her 2026 State of the State address to take action to ensure that young people are not being targeted by offshore and unregulated gambling apps and websites.
“Let’s do more to cut off access to online sports gambling so our kids are not ensnared by addiction at a young age,” Hochul said in January.
The next month, New York Attorney General Letitia James (D) advised the public that if they wish to make a sports bet on Super Bowl LX, they should do so only with one of the state’s sportsbooks licensed by the New York State Gaming Commission. James said prediction markets offering Super Bowl bets, which the platforms describe as “trades,” do not carry the same consumer protections as the state’s regulated sportsbooks.
Along with unregulated gambling not being required to offer the same responsible gaming safeguards and regulatory compliance to protect against underage people accessing their operations, the state is financially motivated to keep consumers on the legal market.
The unlawful market contributes no gaming tax revenue to the state. The NYS Gaming Commission argues that unlawful gaming “siphons revenues from schools, local governments, and charitable organizations.”
Prediction Markets Are 18+
Prediction markets have been at the forefront of the US gaming industry since they began offering trading contracts on sports last year. Federal and state lawmakers, attorneys general, and gaming regulators argue that such trading constitutes sports gambling, but the Commodity Futures Trading Commission has supported such markets under the second Trump administration.
Responsible gaming advocates say exposing sports gambling to teenagers, as prediction markets are legally accessible to anyone aged 18 and up, could lead to higher rates of problem gambling in the future. In Pennsylvania, the 18- to 24-year-old, for the first time ever, is already accounting for the most calls to 1-800-GAMBLER.
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