GAMING COMMISSION
OVERSIGHT
2024 ANNUAL REPORT
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
Inspector General Lang Introduces AIC Brown
To strengthen oversight of New York State’s growing gaming industry, in 2024 I was proud to appoint Investigative Counsel Rachel-Rebekah Brown as the Attorney-in-Charge (AIC) of Gaming Gaming Matters. In this role, Brown serves as both a subject matter expert and the leader of the Office’s gaming-related investigations and oversight across New York State. AIC Brown’s leadership will make certain that OIG continues to meet the increasing complexities of gaming oversight and uphold the integrity of this large-scale industry. AIC Brown joined OIG in January 2023 as an investigative counsel following her service as an assistant district attorney at the Rachel-Rebekah New York County District Attorney’s Office, where she conducted Brown investigations and prosecuted felonies at the Grand Jury and trial Attorney-in-Charge level, including sex assaults, illegal firearms possession, and fraud. Gaming Matters Since joining OIG, Brown has investigated allegations of complex public benefit frauds, Since workers compensation abuses, criminal activity by State employees, and allegations of misconduct in the gaming industry. She has demonstrated exceptional legal and investigative expertise on complex matters, developed successful partnerships with external agencies and law enforcement, and served as a valued mentor. Since June 18, 2021, when the responsibilities of the former Office of the Gaming Inspector General (OGIG) were transferred to and encompassed by OIG, the number of complaints and investigations has continued to grow. In 2024, OIG received over 591 gaming-related complaints—a 59 percent increase from the previous year—highlighting the growing importance of effective oversight. As AIC of Gaming Matters, Brown will undertake and manage investigations involving allegations of crime and misconduct related to commercial casinos, Class III Indian gaming, charitable gaming, video lottery operations, horse racing, the State Lottery, interactive fantasy sports, and mobile sports wagering (MSW). Her duties will include evaluating gaming-related complaints, leading investigations, drafting the Inspector General’s Annual Gaming Oversight Report, and training OIG staff and State agencies on gaming-related issues.
PAGE 02
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
Brown will be OIG’s primary liaison on gaming-related issues with local, state, and federal law enforcement; will represent OIG at industry conferences; and will foster collaboration to address fraud, corruption, misconduct, and crime across the gaming sector. I’m thrilled to have AIC Brown in this leadership role and look forward to working with her to further advance integrity and transparency.
LUCY LANG
NEW YORK STATE INSPECTOR GENERAL
PAGE 03
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
Executive Summary
The New York State Gaming Commission (Commission) regulates and provides oversight for charitable gaming, commercial casinos, Class III Indian gaming, video lottery gaming, horse racing and pari-mutuel wagering, the State Lottery, interactive fantasy sports, and mobile sports wagering (MSW). In order to ensure the absence of any corruption, fraud, criminal activity, conflicts of interest or abuse in the Commission’s execution of its responsibilities, the New York State Inspector General1 has specific statutory authority to receive and investigate complaints from any source regarding allegations of corruption, fraud, criminal activity, conflicts of interest or abuse in the Commission and to undertake proactive initiatives aimed at preventing, detecting, and/or eliminating such concerns. The Commission, headquartered in Schenectady, NY, maintains a physical presence at horse racing tracks, casinos, and State Lottery field offices throughout the State. As part of its oversight, the Commission is also responsible for licensing a wide range of operators and employees, including lottery retailers, and casino and racetrack employees, and has a bureau assigned to effectuate this function. As Commission personnel are located throughout the State, the Offices of the New York State Inspector General (OIG) endeavors to maintain its presence and accessibility by conducting outreach, including regular site visits to meet with Commission employees and operators, as well as conducting corruption awareness trainings.
591
COMPLAINTS
59%
compared to 2023
In 2024, OIG conducted significant outreach, made numerous site visits, participated in a variety of community and industry events and, as a result, received 591 complaints, an approximately 59 percent increase from 2023. While many of these complaints were related to the conduct of MSW vendors, thereby rendering them more appropriately handled by the Commission, a number of others resulted in the opening of full or preliminary investigations by OIG, several of which remain ongoing.
PAGE 04
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
In 2025, the Inspector General appointed a new Attorney-In-Charge (AIC) of Gaming Matters to oversee all OIG gaming related oversight activities. The AIC will continue outreach efforts, conduct at least a dozen in-person training events for Commission personnel, participate in gaming-related community and industry events, continue monitoring gaming developments across New York State, and identify proactive gaming-related initiatives.
Purpose
&
Scope of Annual Report
New York State Racing, Pari-Mutuel Wagering and Breeding Law (PML) § 131(7) mandates that an annual report regarding OIG’s oversight of the Commission for the preceding calendar year be submitted to the Governor, State Comptroller, and Legislature. Accordingly, this Annual Report outlines some of the notable administrative and operational endeavors, outreach, and training conducted in furtherance of that mandate.2
Introduction
&
Background
The Upstate New York Gaming Economic Development Act of 2013 was enacted for the purpose of creating jobs, increasing school aid, providing property tax relief, authorizing destination resort gaming, and consolidating the New York State Racing and Wagering Board and the Division of the Lottery into the Commission, which now regulates all legal gaming activity in the State. This includes horse racing, charitable gaming (e.g., bell jar, bingo, casino nights, and raffles), the State Lottery, casinos (Indian, video lottery, and commercial gaming), interactive fantasy sports, and more recently, mobile sports wagering (MSW). ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
PAGE 05
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
The Legislature also determined that it was “essential to maintain the public confidence and trust in the credibility and integrity of legalized gaming activities,”3 and to that end, specifically created an Office of the Gaming Inspector General (OGIG). OGIG was tasked with investigating allegations of corruption, fraud, criminal activity, conflicts of interest or abuse in the Commission; periodically reviewing and examining policies and procedures; making recommendations to combat corruption, fraud, criminal activity, conflicts of interest or abuse; preparing and releasing to the public written reports of its investigations, as appropriate; referring, when necessary, its findings for disciplinary action or civil or criminal prosecution; establishing training programs; and liaising with other law enforcement organizations. The Commission and OGIG were officially formed on February 1, 2013. In January 2021, then-Governor Andrew M. Cuomo proposed “extract[ing] and segregat[ing] the Gaming Inspector General’s resources and authority from Gaming Commission resources” and transferring the operations of the former OGIG to OIG in order “to eliminate any potential conflicts of interests between the Gaming Commission and the Gaming Inspector General.”4 Effective June 2021, the PML transferred the duties and responsibilities of the former OGIG to OIG thereby increasing the personnel available to investigate gamingrelated complaints.5
Complaints In 2024, OIG received 591 gaming related complaints, an approximately 59 percent increase from 2023. Complaints are received through multiple forms of communication, including hotline, telephone, email, mail, online complaint form, social media, and in person. OIG may also self-initiate a complaint for review. Complaints received in 2024 were derived from the following forms of communication:
Intake Source
2024 Total Complaints
OIG Website
398
151
Hotline
13
Letter
12
OIG Staff
7
Referral
5
Fax
2
Other
3
Grand Total
591
PAGE 06
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
The complaints received by OIG in 2024 can be divided into six general categories that, with the, exception of “Mobile Sports the Wagering” and “Other,” mirror divisions Category Total Complaints within the Commission - Gaming, Charitable Gaming, Horse Racing and Gaming 54 Pari-Mutuel Wagering, and Lottery. Like the Commission, OIG’s Gaming Charitable Gaming 19 complaints categories include complaints related to commercial casinos, video Lottery 42 lottery, Indian gaming, or interactive Mobile Sports Wagering 305 fantasy sports. At the Commission, MSW is also handled by the Gaming Division, Horse Racing and Pari29 however, for tracking and analysis Mutuel Wagering purposes, OIG designates MSW as its Other 142 own category. The Charitable Gaming complaints category includes complaints Grand Total 591 involving bingo, bell jars, casino nights, or raffles. The Horse Racing and Pari-Mutuel Wagering category encompasses complaints involving tracks and track activities, the New York Racing Association (NYRA), or equine safety. The Lottery complaint category encompasses all aspects of the State Lottery including, but not limited to, complaints involving lottery retailers, licensing, and ticket discounting. “Other” is an OIG category used for complaints involving online/internet interactive gaming (“iGaming”), illegal gambling, and other general complaints. The number of 2024 complaints are broken down in the above six categories.
PAGE 07
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
In general, complaints in any category can be described as involving one of the following concerns: Agency and operational-type complaints, which include concerns about program, policy, or procedure issues like lack of staff or direction from management. Employee-type complaints, which include individual behavior concerns such as time and attendance issues or favoritism. Licensee or vendor-type complaints, which include servicerelated issues raised by patrons such as account access problems or concerns about promotional offers. Inquiries which are not traditional complaints but amount to a request for information.
Lastly, miscellaneous-type complaints, which do not fit into the other categories, or which do not relate to OIG’s oversight of the Commission. The distribution of the types of complaints received in 2024 is as follows:
Total Complaints Received
Percentage of All Complaints
Agency/Operational
7
1.20%
Employee
10
1.7
Licensee/Vendor
394
66.70%
Miscellaneous/Other
174
29.40%
Request For Information
6
1.00%
Grand Total
591
100%
Type of Complaint
PAGE 08
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
The review process for newly received gaming-related complaints is conducted in the same manner as all complaints received by OIG. First, on a weekly basis, new complaints are organized by OIG’s case management unit and assigned a case intake number. Then, a team of OIG leadership across all disciplines assembles to review and discuss the complaints received over the prior seven days. The details of each complaint are thoroughly evaluated to determine if the facts alleged establish a matter under OIG’s jurisdiction and if that matter warrants investigation by OIG, if additional information is needed to make such a determination, or if the matter should be immediately referred to the Commission for further action. In some instances, most frequently when a complaint does not make out a facially sufficient cause of action or it is non-jurisdictional to OIG, the complaint may be closed or the complainant directed to another agency. ; When an investigation commences, the case is assigned a case number and OIG assigns staff with the requisite skill set needed to ensure a comprehensive investigation. Thus, in most instances, multidisciplinary teams comprised of investigative counsels, investigators, and auditors work collaboratively. When investigations result in substantiated allegations, the case may be referred to a prosecutorial partner for criminal prosecution, or to the Commission or other State agencies for appropriate action.
9
FULL INVESTIGATIONS OPENED
3
PRELIMINARY INVESTIGATIONS OPENED
In the gaming context, the majority of complaints received by OIG involve facts that, even if accepted as true, constitute traditional Commission regulatory matters, such as vendor customer service disputes and therefore do not warrant an OIG investigation. A frequently seen example of such a complaint involves allegations that an MSW did not honor a certain promotion. These vendor customer service complaints are referred to the Commission to follow up with the accused vendor or initiate possible administrative action. Other complaints may be determined to be appropriate for referral to OIG’s law enforcement partners, or other government investigatory entities. Of the 591 complaints received, the Inspector General opened nine for full investigation and three for preliminary investigation, with most others being referred to the Commission for its review and consideration.
PAGE 09
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
A Look Back - 2024
TRAINING OF OIG STAFF ON GAMING MATTERS In 2024, OIG hosted internal trainings for staff. The trainings provided an overview of the relevant statutory and regulatory framework, explained the functions of the Commission, and provided a summary of gaming related investigatory resources and techniques. They served as an introduction to these topics for new staff and a refresher for experienced staff.
TRANSPARENCY INITIATIVE & PUBLIC AWARENESS In 2024, OIG continued to utilize social media platforms to increase public awareness of its role in oversight of the Commission. In addition to regular postings on Instagram, X (Twitter), and LinkedIn regarding the role and work of OIG, the Office has posted gaming-specific messages.
PAGE 10
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
DOWNSTATE COMMERCIAL CASINO LICENSES
3
UP TO
DOWNSTATE CASINO LICENSES
COLLECT
$500M LICENSING FEE FROM EACH RECIPIENT
LIZ FINA ED
June 27 2025 TIMELINE
PAGE 11
In 2024, OIG continued to monitor gaming developments across New York State including gaming-related legislative updates, the downstate casino license process, and improvements for preventing and identifying problem gambling. By way of background, in 2022, New York State approved a downstate casino bill that allows the Commission to grant up to three downstate casino licenses.6 The licenses, if granted, allow licensees to operate a full casino with slot machines and live table games (e.g., poker, roulette, blackjack). The application process was originally projected to start in 2024; however, in 2024, the Commission announced an application and award timeline for 2025. In opposition to a 2025 timeline, a bill passed in mid2024 proposing a July 2024 application deadline and an early 2025 award timeline, but the bill was ultimately vetoed by Governor Kathy Hochul.7 The current finalized timeline calls for a June 27, 2025, application deadline, and a December 31, 2025, award.8 Upon award, the Commission will also collect a $500 million licensing fee from each recipient.
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
As of the writing of this report, several bidders have withdrawn from the process, leaving the following eight bidders:9; Bidder
Proposal
Location
Thor Equities
The Coney
Coney Island, Brooklyn
Bally’s
Bally’s New York Casino
Ferry Point Park, Bronx
The Soloviev Group, Mohegan, and Bjarke Ingels Group
Freedom Plaza
Midtown East between First Avenue and FDR Drive, and between East 38th Street and East 41st Street in Manhattan
Caesars, Roc Nation, and SL Green
Caesars Palace Times Square
1515 Broadway, New York, NY
Mets owner Steve Cohen and Seminole Hard Rock Entertainment
Metropolitan Park
Citi Field parking lot in Queens
Genting America
Resorts World New York City
110-00 Rockaway Boulevard, Jamaica, NY (*site of current Resorts World Casino)
MGM Resorts
Empire City Casino
810 Yonkers Avenue, Yonkers NY (*site of current Empire City Casino)
Silverstein Properties and Greenwood Gaming & Entertainment
The Avenir
514 11th Avenue, New York, NY
Since January 2025, and through the end of June, bidders have been presenting their plans to local planning and zoning boards. After the application deadline of June 27, 2025, Community Advisory Committees (CACs) covering the geographic area for each bid’s proposed location will form and begin holding public meetings and soliciting public comments.10
PAGE 12
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
The CACs, which must vote by September 30, 2025, will consist of six appointed members for NYC bids and five appointed members for non-NYC bids, and will play a crucial role in the licensing process because approved bidders cannot move to the next step without two-thirds approval of the applicable CAC.11 After the CAC review process, approved bidders will submit supplemental application materials to the Gaming Facility Location Board (GFLB), the oversight body for “the commercial casino siting process in the Metro New York region” and the GFLB will make final decisions on December 1, 2025.12 The Commission will then award licenses on December 31, 2025.; To maintain the integrity of the application review process, OIG intends to closely scrutinize and monitor the selection of CAC members and the progression of the various CAC meetings and decisions. OIG also intends on hosting a table at various CAC meetings to remind both the CAC members and the public to “keep gaming fair” and report to OIG any allegations of fraud, waste, conflict of interest, or abuse.
iGAMING IN NEW YORK STATE In New York State, iGaming, which generally refers to online interactive gaming such as casino game platforms that offer slots, poker, and blackjack, has not been legalized. However, in January 2024, New York State Senator Joseph Addabbo, Jr., Chair of Senate Racing, Gaming and Wagering Committee, introduced a bill aiming to authorize iGaming in New York State.13 Currently, because iGaming has not been legalized in New York, the operators are not taxed, may offer little to no consumer protections, and may have no controls for problem gambling identification and prevention. In 2024, OIG received 32 complaints relating to iGaming platforms failing to honor promotions and refusing to provide players with their monetary winnings. However, because OIG oversight extends only to legal gaming, OIG lacks jurisdiction over iGaming complaints, as does the Commission. Therefore, complainants are often left with no form of recourse or must contact federal agencies such as the Federal Trade Commission.
PAGE 13
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
Critics of iGaming are concerned that legalization will increase the rate of problem gambling,14 increase gambling access for minors, and negatively impact brick-and-mortar casinos. Supporters of iGaming argue that legalization is ultimately inevitable, will generate significant revenue for the State, and will bring necessary regulation to an expanding area. Several states neighboring New York have already authorized iGaming, including New Jersey, Connecticut, and Pennsylvania. In 2023, online casino gaming revenue totaled more than $3.5 billion in New Jersey and Pennsylvania combined, generating approximately $1 billion in tax revenue for those states.15 In 2025, OIG will continue to monitor the development of iGaming legislation and track iGaming complaints.16;
PROBLEM GAMBLING AND RESPONSIBLE GAMING Research suggests that as access to casinos and MSW has increased, so too have searches for help with gambling addictions.17 With the impending award of up to three downstate casino licenses, and proposed legalization of iGaming, New York is on track to further increase gambling accessibility. Therefore, as gaming becomes more accessible to New York State residents, there must be an increase in attention and funding dedicated to addressing problem gambling. New York’s Responsible Play Partnership (RPP), which includes the Commission, the New York State Office of Addiction Services and Supports (OASAS),18 and the New York Council on Problem Gambling,19 conducts statewide outreach to promote responsible gaming practices, increase awareness about problem gambling, and connect people with resources.20 In October 2024, New York’s RPP announced two key updates aimed at addressing, tracking, and preventing problem gambling. First, as of November 2024, when a person selfexcludes from gaming opportunities in New York State, they may also opt-in to being contacted by OASAS HOPEline staff.21 The OASAS HOPEline is a hotline that people may call or text to receive free and confidential information about assessments, interventions, treatments, and supports for substance addiction and problem gambling.22
PAGE 14
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
Next, to support the Commission and OASAS in their analysis and reporting of the impacts of MSW on problem gamblers in New York, the Commission proposed regulations that would require MSW operators to report certain data. The proposed regulations were spurred by findings that many MSW operators have not consistently maintained data in a manner that would allow the Commission and OASAS to gauge which populations are participating in MSW and how they wager. The proposed regulations, which were subsequently adopted in December 2024, will help inform problem gambling prevention, treatment, and recovery. MSW operators are now required to report the following information to the Commission on an annual basis:23 ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; Total amount wagered and number of bets placed Total amount and number of bets won Total gross gaming revenue received by MSW licensee Total amount wagered on each sport Number of accounts held by bettors Average and median account balances Total number of new accounts established in previous year Total number of accounts permanently closed in previous year Total number of voluntary self-exclusions in the previous year
Additionally, for each account, the regulations require that MSW licensees annually report to the Commission the account holder’s zip code; total number of bets placed; total amount wagered; aggregate amount of money won or lost; duration of time spent on the platform; number of times the account holder accessed the platform’s responsible play webpage; whether the account holder reached the lifetime-deposit betting-pause24 threshold and if so, what action the player then took; and the day of the week and hour of day when the account holder placed the most wagers and wagered the most money. The regulation also requires operators to provide account holders’ gender and race and ethnicity, if voluntarily provided. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
PAGE 15
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
A Look Ahead
– 2025
In the year ahead, OIG will continue its robust outreach and training program for Commission staff, conduct regular site visits, and increase awareness and engagement by attending community and industry events. Additionally, OIG will continue to train all internal staff on investigating gaming complaints and will include this training for all new staff as well. OIG will also continue to monitor gaming developments in New York State.
TRAINING In 2025, OIG looks forward to continuing to fulfill its statutory mandate to provide Corruption Awareness Training to Commission employees. The Commission has more than 300 full-time, part-time and per diem employees spread among more than thirty facilities across New York State. OIG anticipates hosting more than one dozen in-person trainings and workshops to educate staff and increase awareness of OIG as a resource for reporting complaints and concerns. In addition, to remind Commission staff and the public of how they can make a complaint to our office, OIG will distribute informational posters containing OIG contact information at all training events and display posters at various gaming facilities throughout the State.
Anticipated 2025 OIG Corruption Awareness Training of Commission Employees
PAGE 16
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
MOBILE SPORTS WAGERING
1,059
COMPLAINTS REVIEWED
Between January 2022 and December 2023
In 2024, OIG conducted a review of all MSW complaints received by the Commission between January 2022 and December 2023 (the first 24 months of legalized MSW). In that time frame, the Commission received a total of 1,059 complaints from patrons and operators,25 or via referrals from the Office of the New York State Attorney General (OAG) or OIG.26
The review found that in 2022, the majority of MSW complaints, 46.3 percent, involved Caesars Sportsbook, while in 2023, the majority of the complaints involved FanDuel and DraftKings at 25.7 percent and 29.4 percent respectively.27 Since then, MSW platforms have continued to increase in popularity, which in turn, has led to an increase in complaints. MSW complaints to OIG increased from 164 in 2023 to 305 in 2024, a 54 percent increase.
59% IN MSW COMPLAINTS
From 2023 to 2024
In 2025, OIG intends to conduct another comprehensive review of MSW complaints made to the Commission, categorizing MSW complaints by operator, type, and value, to better assess the performance of each MSW operator. A comprehensive review and continued tracking will allow OIG to monitor trends, identify deficiencies, and appropriately advise the Commission.
SWEEPSTAKES GAMING The increased popularity of MSW, and the prospect of up to three downstate casinos licenses in New York, has put a spotlight on sweepstakes gaming platforms such as sweepstakes casinos and sweepstakes sportsbooks. Sweepstakes casinos often offer casino games such as slots, poker, roulette, and blackjack, and sweepstakes sportsbooks offer sports wagering. Most sweepstakes gaming platforms generally offer two modes of play.
PAGE 17
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
MODE 1 A free-to-play mode that requires no purchase.
MODE 2 A dual or two-tiered currency system allows players to use real currency to purchase platform specific virtual currency (tier one) and then redeem the platform specific currency for cash and prizes (tier two). ;;;;;
The second, and more controversial mode, uses a dual or two-tiered currency system that critics say bears a close resemblance to traditional gambling. Traditional gambling uses a single currency system where a player uses real currency to a place wager and then, based on the outcome of that wager, wins or loses real currency. A sweepstakes platform’s dual or two-tiered currency system allows players to use cash to purchase virtual coins, often referred to as “gold coins.” Upon purchasing gold coins, a player is gifted free credits, often referred to as “sweep coins,” at a rate which varies by platform.28 For example, some platforms may give a player one sweep coin for their purchase of every ten gold coins, while other platforms may offer a one-to-one conversion rate. Players can then use the sweep coins to wager, and any balance can be redeemed for prizes, including cash, once certain play and eligibility requirements are met.29 Opponents of sweepstakes gaming contend that despite offering two modes of play, sweepstakes gaming bears many similarities to traditional gambling and poses many of the same risks, such as increased rates of problem gambling. Although there are general state and federal regulations that can be applied to sweepstakes gaming, unlike other online gaming in New York such MSW and Interactive Fantasy Sports, sweepstakes gaming is not regulated by a central source.
PAGE 18
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
In March 2025, New York State Senator Addabbo Jr. introduced a bill aimed at prohibiting online sweepstakes games and revenue from illegal markets.30 The bill broadly defines sweepstakes games as “any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone . . . that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or any chance to win [such], and simulates casino-style gaming . . . lottery games . . . bingo and sports wagering.”31 If passed, the bill, in addition to prohibiting sweepstake games, will grant authority to the Commission and the New York State Attorney General to enforce penalties against violators.32;;
Conclusion In 2025, it is crucial that OIG continue to increase its visibility with the public, other law enforcement organizations, and of course, the Commission, its licensees, and its vendors. Hence, OIG will continue to aggressively conduct outreach and training, as well as diligently review complaints and conduct investigations into allegations of corruption, fraud, criminal activity, conflicts of interest or abuse. OIG will also monitor trends in New York State gaming and train investigatory staff on all emerging issues to effectively fulfil our statutory mandate.
PAGE 19
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
FAREWELL TO
Lisa Lee
FORMER DEPUTY INSPECTOR GENERAL FOR GAMING The Inspector General would like to congratulate Lisa Lee, the former Deputy Inspector General for Gaming, on her January 2025 retirement. Lee has extensive experience spanning more than 20 years directing and managing highly sensitive and complex investigations into fraud, waste, and abuse in government. She served as the first Gaming Inspector General, embedded within the Commission from 2013 until gaming oversight transitioned to OIG in June 2021. Under Lee’s tenure, the OIG and OGIG authored 25 reports and letters covering various gaming topics. Prior to joining OGIG, Lee worked in several Inspector General’s offices, including those with oversight of health care, housing, and sanitation. At the New York City Health and Hospitals Corporation, she served as the deputy inspector general for nine years and was responsible for supervising and conducting investigations for the multibillion-dollar public benefit corporation. She also worked for the New York City Department of Investigation’s Inspector General’s Office for the Housing Development Corporation and Sanitation, where she pursued corruption, misconduct and other violations of law, city and agency rules, regulations and ethical code of conduct. She began her legal career as an assistant district attorney for the Kings County District Attorney’s Office. Lee graduated cum laude with a Bachelor of Science, Criminal Justice Planning and Administration from John Jay College of Criminal Justice and obtained a Juris Doctor from the Benjamin N. Cardozo School of Law at Yeshiva University.
PAGE 20
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
Notes 1
1 On November 29, 2021, Governor Kathy Hochul appointed Lucy Lang as the New York State Inspector General. On February 4, 2023, Ms. Lang was re-appointed as the New York State Inspector General for a term that runs conterminously with the current term of the Governor.
2 3 4
5
New York Racing, Pari-Mutuel Wagering and Breeding Law § 130.
3 See Laws of New York, Chapter 60 of the Laws of 2012 §100. 4 See FY 2022 Executive Budget Briefing Book, Revenue Actions, Gaming Initiatives, 5 “Decouple the Gaming Commission and the Gaming Inspector General,” 6 Effective June 18, 2021, the duties and responsibilities of the former Office of the Gaming Inspector General were transferred to and encompassed by the Offices of the New York State Inspector General. See Chapter 59 of the 2021 Laws of New York.
6 7 Racing, Pari-Mutuel Wagering and Breeding Law Chapter 47-A, Article 13, Title 2-A. 7
Relates To The Acceleration Of The Downstate Casino Licenses, S9673A, 20232024 Legislative Session (2024)
8 https://www.nysenate.gov/legislation/bills/2023/S9673/amendment/A. 8
Gaming Facility Location Board, Request For Applications To Develop And Operate A Gaming Facility In New York State (June 27, 2024) https://nycasinos.ny.gov/system/files/documents/2024/06/06.27.24addendum.pdf
9
9 Marquez, Wynn becomes latest bidder to drop out of New York casino race, iGaming Business (May 19, 2025) https://igamingbusiness.com/strategy/wynnwithdraws-new-york-casino-licence-race/
10
10 Gaming Facility Location Board, Required Approvals - Entitlements & Community
Advisory Committees https://nycasinos.ny.gov/required-approvals-entitlementscommunity-advisory-committees (last visited Mar. 11, 2025)
PAGE 21
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
11 12
13
Id. Gaming Facility Location Board, Casinos in New York, https://nycasinos.ny.gov/ (last visited Mar. 11, 2025). Relates To Interactive Gaming, S8185A, 2023-2024 Legislative Session (2024) https://www.nysenate.gov/legislation/bills/2023/S8185/amendment/A. S8185A in the Senate Committee as of Feb. 1, 2024. Senate Bill S2614, 2025-2026 Legislative Session (2025) was introduced on January 21, 2025, and remains in Sente Racing, Gaming and Wagering Committee https://www.nysenate.gov/legislation/bills/2025/S2614.
14
See Wardle et. Al., The Lancet Public Health Commission on gambling, The Lancet Public Health https://www.thelancet.com/action/showPdf?pii=S24682667%2824%2900167-1.
15
16
Relates To Interactive Gaming, S8185A, 2023-2024 Legislative Session (2024) https://www.nysenate.gov/legislation/bills/2023/S8185/amendment/A. Relates To Interactive Gaming S2614, 2025-2026 Legislative Session (2025) https://www.nysenate.gov/legislation/bills/2025/S2614 was introduced on January 21, 2025, and remains in Senate Racing, Gaming and Wagering Committee.
17
“The number of states with operational sportsbooks increased from 1 during 2017 to 38 during 2024. Total sports wagers increased from $4.9 billion during 2017 to $121.1 billion during 2023, with 94% of wagers during 2023 being placed online. Additional analyses suggest the opening of online, vs retail, sportsbooks corresponded with a larger increase in searches.” (Yeola, et el., Growing Health Concern Regarding Gambling Addiction in the Age of Sportsbooks (February 17, 2025) https://jamanetwork.com/journals/jamainternalmedicine/articleabstract/2830019).
18
The mission of the New York State Office of Addiction Services and Supports (OASAS) is to provide, support, and oversee a data-driven continuum of addiction services delivered with equity, dignity, compassion, and respect. (Office of Addiction Services and Supports https://oasas.ny.gov/about (last visited Mar. 11, 2025)).
PAGE 22
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
19
The New York Council on Problem Gambling is a not-for-profit independent corporation dedicated to increasing public awareness about problem and disordered gambling and advocating for support services and treatment for persons adversely affected by problem gambling. New York Council on Problem Gambling, NYCPG.com, TKTKT (last visited Mar. 11, 2025).
20
21
Gaming Commission, Responsible Gaming https://oasas.ny.gov/about (last visited Mar. 11, 2025). NY’s Responsible Play Partnership Announces Additional Collaborative Measures to Prevent Problem Gambling, Gaming Commission, October 30, 2024 https://gaming.ny.gov/news/nys-responsible-play-partnership-announces-additionalcollaborative-measures-preventproblem#:~:text=About%20the%20Responsible%20Play%20Partnership&text=The% 20RPP%20works%20to%20ensure,for%20individuals%20who%20need%20it.
22
OASAS HOPEline Services https://oasas.ny.gov/hopeline; OASAS Annual Report 2022, April 19, 2023 updated June 29, 2023, https://gaming.ny.gov/system/files/documents/2024/05/06.29.23.mswimpactreport. pdf.
23
NY’s Responsible Play Partnership Announces Additional Collaborative Measures to Prevent Problem Gambling, Gaming Commission, October 30, 2024 https://gaming.ny.gov/news/nys-responsible-play-partnership-announces-additionalcollaborative-measures-prevent problem#:~:text=About%20the%20Responsible%20Play%20Partnership&text=The% 20RPP%20works%20to%20ensure,for%20individuals%20who%20need%20it; Gaming Commission, (2024, October 28) Minutes - Meeting of 28 October 2024 (adopted Dec. 16, 2024) 2024-12-16-public-meeting-book.pdf; 9 NYCRR § 5330.29, 5330.37.
24
“When an account holder’s lifetime deposits exceed [$2,500], the [MSW] operator shall prevent any wagering until the patron immediately acknowledges that the account holder has met the deposit threshold and may elect to establish responsible gaming limits or close the account, and the account holder has received disclosures from the [MSW] operator concerning problem gambling resources. Once a patron has reached their lifetime deposit, such patron shall annually make the acknowledgement required by this paragraph.” Racing, Pari-Mutuel Wagering and Breeding Law § 1367-a(4)(a)(xiii).
PAGE 23
GAMING COMMISSION OVERSIGHT 2024 ANNUAL REPORT
25
26
Of note, any dispute in excess of $5,000 requires the operator to notify the Commission. See 9 NYCRR 5329.23. Offices of the New York State Inspector General, Gaming 2023 Annual Report, p. 19, June 7, 2024, https://issuu.com/newyorkstateig/docs/2023_annual_report_on_gaming_commissi on_oversight?fr=sMjYwMTcwOTg3Nzk.
27 28
Id. Regulatory Vigilance Critical to Ensure “Sweepstakes” Don’t Threaten Consumers and Undermine Gaming Regulation, American Gaming Association, https://gamblingcompliance.vixio.com/sites/default/files/inlinefiles/AGA%20Sweepstakes%20Memo%20(1).pdf.
29
Id.
30
Prohibits Online Sweepstakes Games and Revenue From Illegal Markets, S5935, 2025-2026 Legislative Session (2025) https://www.nysenate.gov/legislation/bills/2025/S5935.
31
Id.
32
Id.
PAGE 24