Attorney General James Warns New Yorkers of Potential Harms of Sports Betting and Prediction Markets

February 2, 2026

NEW YORK - New York Attorney General Letitia James today issued a consumer alert warning New Yorkers of the risks posed by prediction markets, online platforms offering bets masquerading as "event contracts" on the outcomes of political elections, sporting events, or other future events. These platforms operate without consumer protection and without the supervision of the New York Gaming Commission, putting New Yorkers at significant financial risk. Attorney General James is also warning the industry that the conduct, advertisement, and promotion of unlicensed sports wagering violate New York's gambling laws and could be subject to civil and criminal liability.

"Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets," said Attorney General James. "It's crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money."

Prediction markets may appear as modern, high-tech platforms for speculation or "forecasting," but in practice, many operate as unregulated gambling without the basic protections New York consumers both deserve and expect from properly licensed operators. These protections include:

• Allocating resources to develop and fund programs to combat problem gambling,
• Implementing procedures to prevent underage gambling,
• Enforcing restrictions to prevent predatory or deceptive advertising,
• Utilizing procedures to identify customers battling a gambling addiction,
• Creating guardrails to allow consumers to exclude themselves from the platform, and
• Upholding prohibitions against insider betting and requiring regulatory review to ensure the financial stability and integrity of gambling operators.

The financial industry has begun issuing reports of increased financial risks associated with prediction markets, including the overextension of credit and rising loan defaults.

New Yorkers deserve to know that a platform is legitimate, regulated, and operating under consumer safeguards, before ever placing a bet. To protect themselves, New Yorkers are encouraged to:

• Determine whether the platform is licensed by the New York Gaming Commission by checking online. If it is not, the platform may be operating illegally in the state of New York.
• Avoid risking money you cannot afford to lose. Treat these prediction markets as high-risk-no guarantee of returns, and no guarantee of access to your funds.

Resources
The ease of online betting may cause consumers to forget that they are gambling with real money and that they can suffer devastating financial losses if gambling becomes problematic. The New York State Office of Addiction Services and Supports (OASAS) recommends setting limits on the amount of time and money you plan to spend gambling and limiting the use of alcohol or other substances while gambling. If gambling is a problem for you or someone in your life, Attorney General James urges you to seek assistance. Resources that may be able to help include:

• New York Council on Problem Gambling
• 24-Hour Problem Gambling Helpline: 1-877-846-7369, TEXT: HOPENY (467369)
• Gamblers Anonymous