A bill introduced in New York seeks to ban all live betting, which includes in-play esports wagering. 

Assembly member Linda Rosenthal introduced bill A9343, which states it “shall prohibit any casino, mobile sports wagering licensee or mobile sports wagering operator from accepting in-play sports wagers from sports bettors in this state.”

The bill has been referred to the Assembly Racing and Wagering Committee, where it will undergo discussion. 

If passed, it would be a major restriction for betting platforms in New York. In-play wagering varies by sport, but in the US typically makes up around 50% of all wagers. 

Rosenthal argues that in-play wagers encourage problem gambling. In her legislative justification, she wrote, “New York state has an obligation to protect consumers and address concerning public health trends. As such, this legislation will prohibit mobile sports betting licensees, operators and casinos from accepting in-play wagers in New York state.”

Due to the fast-moving markets, there are also opportunities for gamblers to win large amounts betting in-play. 

This week, it was revealed that a trading bot operating on Polymarket has turned $900 into over $200,000 through wagering on esports markets, primarily live matches in League of Legends and Dota 2.

Another NY Bill Seeks To Outlaw Prediction Markets

While the bill is targeted at sportsbooks and would not immediately restrict prediction markets, such as Polymarket, another bill introduced last month seeks to prohibit sports prediction markets in New York. 

Assemblyman Clyde Vanel introduced Assembly Bill A9251, also known as the ORACLE Act (Oversight and Regulation of Activity for Contracts Linked to Events). 

The terms of the bill state, “A prediction market platform provider shall not permit New York users to open a speculative position on the following types of markets:

• Catastrophic event markets;
• Political markets;
• Death markets;
• Security markets; and
• Athletic event markets.”

It is not immediately clear if athletic event markets would cover esports. The bill is currently under consideration in the Assembly Consumer Affairs and Protection Committee. 

New Yorkers Biggest Gamblers in the Country

New Yorkers are the biggest gamblers in the country, wagering almost $24 billion on sports in FY2024. That figure appears poised to be eclipsed this year, with nearly $17 billion wagered as of the end of November. 

After the results for December to March are added, the total wagered in FY2025 is expected to exceed $25 billion. January and March are traditionally the biggest betting months, with almost $5 billion staked across the two months at the start of this year. 

In-play betting is likely to have easily exceeded $10 billion this year, and restricting it would significantly reduce the tax revenue gained by the state. New York places a 51% tax rate on sportsbooks, collecting over $1 billion in revenue last year. 

It remains to be seen whether Rosenthal’s bill will gain the necessary support to make it through the Assembly and House to be enacted.