NY Regulators Tighten Underage Gambling Rules

The New York State Gaming Commission May 23 approved a regulation to standardize and increase penalties against gambling operations—including racetracks—that let any minor under age 18 place wagers on their products.

The move by the NYSGC is the latest attempt to address betting-related problems, including the expected rise in compulsive gamblers as the state expands wagering opportunities with the opening next year of three new, large commercial casinos. The commission also approved a uniform self-exclusion rule for compulsive gamblers at casinos.

The underage betting penalties affect operators of racetracks, video lottery terminal casinos at racetracks, lottery vendors, and groups that are allowed to offer charitable gambling.

The action came despite concerns from the New York Gaming Association, whose members include racetrack operators of VLT casinos. The group said the rule isn’t necessary, calls for unduly harsh penalties, and removes consideration of mitigating circumstances, according to a transcript of the NYSGC meeting.

A second group representing supermarkets, taverns, and restaurants, gasoline shops, and convenience stores urged a number of changes, including the state agreeing not to enforce the rule until lottery vending machines are equipped with identification card readers. The NYSGC didn’t change the rule to address the group’s opposition.

The rule doesn’t address casinos now under construction in three parts of the state because the process began before the casino rules were devised. Officials said new, under-age gambling sanctions are being developed to apply to the casinos.

The new rule imposes penalties for under-age betting on a graduated scale against licensed track, VLT, and other gambling operators.

For racetracks, the NYSGC will penalize association of corporate owners whose facilities permit someone under the age of 18 to place a wager. There would be a $1,000 fine for the first violation, a $5,000 fine if a second violation occurs within a year of the first, and a $10,000 fine for a third violation.

A fourth violation that occurs within a year of another violation calls for a $25,000 fine and “such action as the commission may deem appropriate,” including suspension or revocation of any license or privilege to operate or manage a track in this state, the rule states.