NYS Gaming Commission warns New Yorkers against prediction markets, sweepstakes casinos

The New York State Gaming Commission has launched a new campaign warning residents about the dangers of illegal online gambling, with regulators targeting offshore betting sites, prediction markets, and sweepstakes-style casinos.

The campaign, called “Avoid Risky Bets,” aims to educate New Yorkers about unlawful gambling platforms that operate without state oversight or consumer protections.

New Yorkers can legally participate in several regulated forms of online wagering, the commission highlighted. These include sports betting through licensed operators, horse racing advance deposit wagering, authorized charitable raffles, interactive fantasy sports, and lottery ticket purchases through approved channels.

However, the regulator emphasized that online casinos, offshore gambling sites, sweepstakes-style casino platforms, and prediction markets remain illegal in New York State.

“Legitimate, lawful, regulated gaming – of which there are ample options – has fair wagers, player safeguards, responsible gaming measures, and societal benefits,” said Commission Chairman Brian O’Dwyer. “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. While the two may sometimes look similar, it’s clear which one is a smart wager and which one is a risky bet.”

According to the commission, illegal gambling platforms often lack basic consumer protections such as dispute resolution systems, anti-money laundering safeguards, identity verification measures, and responsible gaming tools. Officials also warned that some unlawful operators permit betting markets involving political violence, war, or insider-driven outcomes.

State regulators said these platforms may expose users to unfair wagering practices, unpaid winnings, identity theft risks, and potential links to organized crime.

The commission also expressed concern about underage gambling. While legal sports betting in New York requires users to be at least 21 years old, many offshore and prediction-market platforms allow access at age 18 and reportedly lack effective age-verification systems.

Governor Kathy Hochul previously directed the commission to strengthen efforts aimed at preventing minors from accessing online betting apps and accounts as part of her 2026 State of the State agenda.

“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.

Officials noted that, unlike regulated gaming, unlawful gambling operators do not contribute tax revenue to schools, local governments, charitable organizations, or problem gambling services across the state.

The commission encouraged residents to report suspected illegal gambling activity through complaints filed with the Gaming Commission, the New York State Attorney General’s Office, or the New York State Police.

The agency said the campaign builds on broader responsible gaming initiatives developed in partnership with the New York State Office of Addiction Services and Supports and the New York Council on Problem Gambling through the state’s Responsible Play Partnership.