The New York State Gaming Commission (NYSGC) is reviewing all player prop bets and same-game parlays and stated that it will consider eliminating some bet types based on the results.
In a letter to sports leagues posted publicly on Wednesday, the regulator of the biggest legal U.S. sports betting market by handle and revenue also urged leagues to formally request limitations on certain wagers if they feel that is the right thing to do.
“The recent allegations, investigations and prosecutions that have come to light have caused the Commission to re-examine all individual player proposition wagers that are game specific, as well as single game specific multi-leg individual player parlays,” stated the letter. “If our review requires the outright elimination of certain bets, the Gaming Commission will use its regulatory authority to prohibit them.”
New York regulator has the power
The letter from Chair Brian O’Dwyer and all NYSGC commissioners referenced high-profile instances of betting-related scandals in major U.S. sports. It did not name specific incidents, but Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz were charged with pitch manipulation and betting violations last summer, and Miami Heat guard Terry Rozier was arrested in October in a federal investigation over suspicions of performance manipulation.
The commissioners wrote that while regulatory measures appear to have worked by uncovering those schemes, the leagues themselves must step up to help preserve integrity by providing “substantial input regarding the wagering menu.”
New York commissioners referenced that NCAA President Charlie Baker called last year for limiting or eliminating player prop bets on college sports, and that MLB announced it would impose certain limits on pitch-level betting.
However, the letter stressed that in New York, the Gaming Commission controls the wagering menu and limits the sports and leagues that are allowed for betting. It also emphasized that state law and NYSGC regulations specifically allow leagues to request restriction, limitation or exclusion of certain wagers.
“We strongly encourage – and expect – each of your leagues to avail yourselves of this tool, should you have a reasonable belief that such a restriction, exclusion or limitation would improve wagering integrity,” read the letter. “Should we receive such a request, the Commission would act with alacrity – despite the 60-day regulatory timeframe referenced.”
NYSGC signposted this in November
The letters to leagues are an escalation of a process that O’Dwyer revealed was already underway at a commission meeting in November. Then, he said the regulator had instructed its staff to re-examine the suitability of all game-specific individual player props and same-game player parlays in light of the betting and game manipulation scandals enveloping the MLB and NBA at the time, and that the NYSGC had already written to all 70-plus leagues on which it allows betting to ask them to suggest any limitation on wagers for their sports.
In November, O’Dwyer said that an initial staff review of the 104 NFL prop bets that the commission allows found that only one was considered to be a potential concern.
“In fact,” read the new letter, “most of the specific proposition wagers that a league found problematic were already prohibited in New York State.”
“To ensure the integrity of sports wagering in New York State, the Gaming Commission has been and will continue to be very conservative with the approval of leagues and types of wagers authorized to provide confidence to bettors,” it continued.
Legislative bills would limit or ban props
Other states have mulled reviewing their wagering catalog. The Ohio Casino Control Commission said last year it was assessing the idea but subsequently told SBC Americas in November, after MLB imposed its limits on pitch-level bets, that it was concerned that imposing its own regulatory rule “could inadvertently impede other conversations from occurring and potentially stifle that dialogue.”
However, the OCCC added that it reserves the right to enforce a new rule, “should it become apparent that regulatory action is necessary.”
Meanwhile, the NYSGC’s call-to-arms to sports leagues comes while there are several active bills in the Empire State legislature this year proposing to change state law to either limit or ban certain bet markets.
One, Assemblymember Linda Rosenthal’s Bill A9343, would remove “in-play bets” from the legal definition of authorized sports wagering activity in the state. Another, Asm. Carrie Woerner’s A9636, would limit sports betting to wagers on the final outcome, score or winner of a sporting event.
