I can’t help but see the potential fallout from Assemblyman Robert Carroll’s proposed bill to cap daily wagering at $5,000 and restrict deposits and advertising.
While the intent—to curb problem gambling – is noble, these stringent limits could inadvertently drive bettors to illegal offshore betting sites, which operate beyond the reach of New York’s regulators.
Illegal offshore betting sites are likely to seize this opportunity by targeting New York bettors frustrated with the $5,000 daily cap and deposit restrictions.
These platforms, often based in jurisdictions with lax oversight, can offer unlimited wagering, no deposit thresholds, and aggressive promotions – exactly the kind of enticements Carroll’s bill aims to curb.
For high rollers or even casual bettors who hit the cap during a big game, the allure of unrestricted betting could be tempting.
Offshore sites could also exploit the advertising ban by flooding social media, email campaigns, and affiliate networks with promotions for odds boosts and bonuses, capitalizing on the void left by regulated sportsbooks.
The lifetime deposit threshold of $2,500, which triggers mandatory account pauses, might further push bettors to these sites, where no such interventions exist.
These platforms thrive on anonymity, often requiring minimal identity verification, making them a haven for those seeking to bypass New York’s responsible gaming measures.
The challenge for New York is that offshore sites operate outside its jurisdiction, making direct enforcement nearly impossible.
However, there are practical steps the state can take to curb their influence. First, New York could ramp up public awareness campaigns to educate bettors about the risks of offshore sites, such as lack of consumer protections, potential for fraud, and no recourse for disputes.
These campaigns could highlight the benefits of regulated platforms, like secure transactions and responsible gaming tools. Second, the state could strengthen partnerships with financial institutions to flag and block transactions to known offshore betting operators, though this is tricky given the use of cryptocurrencies and payment processors by these sites.
Third, New York’s gaming commission could work with federal authorities and tech companies to crack down on offshore sites’ online presence, targeting their advertisements and domain hosting.
Finally, the state should ensure its regulated sportsbooks remain competitive by allowing reasonable flexibility within the new rules – perhaps tiered limits based on verified income or betting history – to reduce the incentive to go offshore.
While Carroll’s bill addresses real concerns about problem gambling, it risks pushing bettors into the shadows if not paired with robust countermeasures.
New York must balance its protective instincts with strategies that keep legal betting appealing and safe, or else the unregulated market will be more than happy to fill the gap.