Requires all withdrawal transactions made through a service provided by a mobile sports wagering licensee to be irreversible by the withdrawing consumer, the licensee or another at the consumer's request.
Summary
This bill amends New York’s racing, pari-mutuel wagering and breeding law to require that all withdrawal transactions made through a mobile sports wagering licensee be irreversible. Under the bill, once a consumer initiates a withdrawal from a mobile sports betting account, neither the consumer, the licensee, nor any other party acting at the consumer’s request could reverse that transaction.
The bill also establishes enforcement provisions. A licensee that allows reversible withdrawals would face a civil penalty of $10,000 per day, and if the state gaming commission finds a persistent pattern of violations, the penalty could increase to as much as $25,000 per day. Any contract term that attempts to eliminate or expand a person’s rights under this new rule would be void. The act would take effect 90 days after becoming law.
Impact
The bill would add a new subdivision to section 1367-a of the racing, pari-mutuel wagering and breeding law, directly regulating how mobile sports wagering licensees handle customer withdrawals. It would limit flexibility in account cash-out processes for online sports betting platforms and impose significant civil penalties for noncompliance, giving the state gaming commission an enforcement tool against operators that permit reversals. It would also invalidate conflicting private agreements between consumers and wagering entities.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text alone, the measure appears to reflect a consumer-protection and anti-abuse approach to mobile sports wagering transactions, with a clear regulatory preference for finality in withdrawals.
Contention
The main policy issue is whether withdrawal transactions in mobile sports wagering should be locked in once initiated, which could protect consumers from impulsive reversals but also reduce flexibility for correcting mistakes or responding to fraud concerns. Potential contention may come from mobile sports wagering licensees and industry stakeholders, who would bear compliance obligations and penalties, versus regulators or consumer advocates who may favor stricter controls and transaction finality. The bill’s voiding of contrary contract terms may also be a point of concern for operators seeking to manage account terms through user agreements.
Prohibits mobile sports wagering operators from imposing any condition requiring an authorized sports bettor to wager deposited funds as a prerequisite to withdrawing such funds.
Provides that no advertisement by or on behalf of a mobile sports wagering licensee shall be publicly disseminated during the broadcast of any live sporting event.
Prohibits mobile sports wagering operators from enabling or otherwise permitting authorized sports bettors to deposit or withdraw funds to or from their account through gift certificates, open loop gift certificates, or e-wallets.
Relates to wagers on certain horse racing events; authorizes agreements between a mobile sports wagering operator, mobile sports wagering licensee, or operator and an entity that possesses a license and that has the authority to conduct pari-mutuel wagering on the form of racing involved in the relevant horse racing event, involving wagers to be made solely by residents of the state of New York while located within New York, and subject to the approval of the commission.
Prohibits mobile sports wagering operators and mobile sports wagering platforms from allowing more than five deposits from an authorized sports bettor in a twenty-four hour period.
Requires mobile sports wagering operators to submit anonymized data to the gaming commission; authorizes the gaming commission to share such data for the purposes of studying the impact of mobile sports wagering on problem gambling.