New York sports betting reform bill fails in committee

The New York State Legislature is set to ban sweepstakes casinos, but a separate bill to tighten sports betting regulations has failed.

The sweepstakes casino ban has passed both chambers and awaits Governor Kathy Hochul’s signature, which she is expected to provide. However, Assembly Bill A7962, introduced by Assemblyman Robert C. Carroll in April, did not move beyond the Racing and Wagering Committee, reports PlayNY.

The bill proposed new limits on sports betting, including a cap of five deposits per bettor with each licensee in a 24-hour period, a $5,000 daily wagering limit, and a ban on credit card deposits. It also included sweeping restrictions on sportsbook advertising, prohibiting ads during live sporting events and between 8 a.m. and 10 p.m., and banning marketing materials that used terms like “bonus,” “no sweat,” or “bonus bet.”

In an X post, Carroll defended the proposal, stating that the growing sports betting industry is still “lightly regulated” and has already harmed thousands of New Yorkers. He argued that the legislation would have provided necessary guardrails and even disclosed that he holds a personal account with Caesars Sportsbook to emphasize his firsthand understanding of the industry.

My bill A7962 creates guardrails to protect NYers who participate in sports gambling.

This nascent industry is lightly regulated and has harmed thousands of NYers. The least we could do is put specific monetary caps and advertising restrictions.

FYI -I have a Caesars account. https://t.co/dtke2imQOa

— Assemblymember Robert Carroll (@Bobby4Brooklyn) April 18, 2025

The bill would have expanded on a 2023 law that requires gambling ads to include addiction warnings and hotline numbers. Critics warned that the bill could push users toward unregulated offshore sportsbooks by restricting legal operators.

Despite calls for tighter regulation, New York continues to lead the nation in sports betting activity. Since legalizing online sports wagering in 2022, the Empire State has amassed nearly $70 billion in total betting handle and over $3.15 billion in tax revenue, according to Legal Sports Report.

The state's 51% tax rate on sportsbook revenue is the highest in the country—tied with Rhode Island and New Hampshire—and has generated more than $1.9 billion in revenue over the past three years, per a 2024 Washington Post report. Major operators in New York’s betting market include FanDuel, DraftKings, Caesars, BetMGM, and Fanatics.