New York Takes Steps to Ban Proxy Betting
Jesse M. Cox Published 09/04/2026
Approval of Assembly Bill 9584 (AB 9584) this week by the New York State Assembly could ultimately lead to some significant changes in the way that online sports betting operates in the Empire State.
Among the sweeping changes that would be implemented if this bill were to become law is that proxy betting would be prohibited in New York State. A proxy bet takes place when one person with an online sports betting account places a wager on behalf of an unnamed other person with the intention of concealing the identity of the person actually placing the bet.
Another alteration would result in all player prop wagering on college sports being prohibited in the state.
AB 9584 was passed in the State Assembly by a unanimous 142-0 vote. The bill now moves on to the Senate Racing, Gaming, and Wagering Committee for review. If the State Senate also passes the bill, AB 9584 would move to the desk of Governor Kathy Hochul, who could sign it into law.
Proponents of the ban on proxy betting feel that this type of wager undermines efforts to enforce responsible gambling measures. Not knowing the identity of the bettor means it could be someone who is currently on a restricted list or under self-exclusion rules. It might even be a participant in the actual event upon which the wager is being placed, such as a player, coach, or team or game official. All of these people would be prohibited from betting on an event in which they were participants.
Sportsbook operators would be required to monitor such activity and would be given the power to shut down any accounts caught placing proxy bets.
College player prop wagers are a hot-button issue across the U.S. legal and regulated sports betting industry. The NCAA has lobbied states that offer legal sports betting, requesting that all wagers based on player performances be banned from college sports. It’s felt that such bets can lead to undue pressure being placed upon student-athletes and have led to harassment of players, both in person and through social media, by bettors who’ve lost player prop wagers on that athlete.
Responsible gambling measures would also be reinforced by AB 9584
Several changes to responsible gambling regulations in New York State would also be implemented if AB 9584 becomes law. Along with promoting a safer gambling environment, these measures are designed to increase transparency in customer relations, reduce the potential for abuse, and enhance the protection of customer information.
Monitoring player risk is at the top of this agenda. Higher risk bettors would be more well-defined and sportsbook operators would be required to monitor activity and closely manage these accounts.
Know Your Customer measures would also be ramped up. Identity verification would be closely scrutinized and emphasis would be placed on sports betting sites to identify problem gamblers and direct them to organizations that can offer help. Any sharing of customer data by sportsbooks would be prohibited and when a player closes an account, it would mandatory that all of their data be deleted.
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