Duane Morris LLP – New York State Gaming Commission Implores Leagues to Search Restriction, Limitation or Exclusion of Sure Wagers

The letter highlights a key however underutilized device out there to leagues: the statutory and regulatory proper to request restrictions, limitations or exclusions on sure wagers.

On February 4, 2026, the New York State Gaming Commission (NYSGC) requested all sports activities leagues collaborating within the state’s regulated sports activities wagering business to play a extra lively function in shaping the state’s permitted wagering varieties. This growth is critical as a result of it indicators the extant curiosity of the fee, already a strict regulator of permitted wagering varieties, in vetting its rules, and it comes as a number of high-profile incidents involving athletes and controlled sports activities betting captured nationwide headlines.

Sports wagering is primarily ruled by state legislation, and every state maintains its personal distinctive regulatory scheme. Generally, all states preserve obligatory reporting necessities pertaining to suspicious wagering exercise and obligations to help legislation enforcement investigations.

Although New York’s present regulatory framework is not any exception when it comes to its measures designed to curtail and detect fraud and different illicit schemes, the NYSGC letter highlights the function of the leagues in preserving the integrity of wagering within the state. Unlike many different jurisdictions the place licensed sportsbook operators publish the wagering “menu” out there for bettors inside sure parameters set by state legislation, the NYSGC retains that authority in New York by enumerating which sports activities, leagues and wager varieties are authorized for betting.

The letter highlights a key however underutilized device out there to leagues: the statutory and regulatory proper to request restrictions, limitations or exclusions on sure wagers. Pursuant to New York State Racing Pari-Mutuel Wagering and Breeding Law Section 1367.11, a sports activities governing physique could notify the NYSGC that it needs to limit, restrict or exclude wagering on its sporting occasions, and the fee should assessment such requests in good religion.[1] Commission Rule 5329.13(b)(2)(v) additional offers that the fee could prohibit wagers on any sports activities occasion it deems opposite to public coverage, together with upon a written request from a league or governing physique submitted not less than 60 days upfront.

Notably, the NYSGC acknowledged that since sports activities wagering turned regulated in 2019, no league has but submitted such a request. The fee inspired leagues to take action if they’ve an inexpensive perception {that a} restriction would enhance wagering integrity. The fee additionally signaled it could act shortly, regardless of the 60-day regulatory timeframe.

The letter additionally signifies the fee is reexamining all particular person participant proposition wagers which can be game-specific, in addition to single-game multileg particular person participant parlays. If its assessment determines that sure bets pose vulnerabilities to integrity, the fee intends to ban them outright. This follows latest strikes by different organizations. The NCAA has known as for the elimination of participant prop bets and Major League Baseball has labored with sportsbook companions to implement caps on pitch-level wagering markets.

New York will not be alone in offering leagues a proper avenue to help in wagering rules. For instance, Colorado, South Dakota and Virginia authorize sports activities governing our bodies to request wagering restrictions. These provisions replicate a rising recognition amongst regulators that leagues possess distinctive perception into the dangers particular to their sports activities and will have a significant alternative in shaping wagering coverage.

Ultimately, the NYSGC letter is a reminder that leagues have express statutory and regulatory instruments at their disposal to help in defending the integrity of their sports activities and the betting public. As scrutiny of participant proposition wagers intensifies and different states contemplate regulating sports activities wagering, leagues that proactively interact with regulators could also be higher positioned to form outcomes and reveal their dedication to integrity. For leagues working in New York, the fee has made the method easy—requests may be submitted by e-mail to requests@gaming.ny.gov.

For More Information

If you have any questions about this Alert, please contact Frank A. DiGiacomo, James A. Lewis, Stephanie Nakash, any of the attorneys in our Gaming Industry Group or the attorney in the firm with whom you are regularly in contact.

Notes

Disclaimer: This Alert has been ready and revealed for informational functions solely and isn’t supplied, nor needs to be construed, as authorized recommendation. For extra info, please see the agency’s full disclaimer.