New York Attorney General Letitia James is warning residents about the dangers of prediction markets—online platforms that let users place bets on the outcomes of political elections, sporting events, and other future events.
“These so-called prediction markets do not have the same consumer protections as regulated platforms,” James said. “I urge all New Yorkers to be cautious of these platforms to protect their money, especially ahead of the Super Bowl.”
Unlike licensed gambling operators, these platforms operate without oversight from the New York Gaming Commission, leaving users vulnerable to financial losses. Licensed operators must follow rules to prevent underage gambling, combat problem gambling, restrict deceptive advertising, and maintain financial stability—protections largely absent in unregulated prediction markets.
Reports from the financial industry indicate growing risks, including overextended credit and rising loan defaults linked to these platforms.
James also warned that the promotion or advertisement of unlicensed sports wagering in New York violates state gambling laws and could result in civil and criminal penalties.
To protect themselves, New Yorkers are encouraged to:
- Check whether a platform is licensed by the New York Gaming Commission.
- Avoid betting money they cannot afford to lose and treat prediction markets as high-risk.
The Attorney General’s office reminds residents that gambling can have serious financial and personal consequences. Those struggling with gambling issues are urged to seek help through the New York Council on Problem Gambling or the 24-hour helpline at 1-877-846-7369 (TEXT: HOPENY).
