New York’s state inspector general’s office has noted increased complaints submitted against the New York State Gaming Commission and the related entities it regulates. This became the case since the office took over the handling of the regulator’s internal investigations two years ago. Some of the complaints involve the commission’s activities.
Inspector General Lucy Lang believes that the bump in complaints related to the commission comes at the same time with a decision by the Legislature and governor to change how the allegations are investigated. This changed in June 2021, when the commission’s inspector general was removed from that office and merged with the state inspector general’s office.
A New Report Finds
A large portion of the received complaints are about traditional commission regulatory matters such as customer service disputes, rather than issues of problematic behavior within the commission. However, according to a recent report from the inspector general’s office some of the office’s recent findings indicated that newly filed complaints also involved state employees.
Complaints at the regulator surged due to proactive efforts by the inspector general’s office in gathering mobile sports betting-related complaints. The commission reminds employees of outside complaint options. Previously, internal investigations were conducted, but now they’re shifted to an independent state inspector general’s office, aiming for transparency and independence. Lisa Lee, the former gaming inspector general, handled investigations but didn’t report findings publicly despite legal obligations.
Also worth mentioning is that the commission transitioned to external oversight, addressing concerns about transparency. Under Ms. Lee’s tenure, investigations into employee misconduct were conducted internally and shared with the commission for response. This setup raised questions of independence and transparency. The regulator’s recommendation backed the transition for years.
After becoming independent, the inspector general’s office expanded investigations and transparency. The office now handles more complaints, including those related to sports wagering operators. There are also cases involving the commission’s practices and ethics enforcement. NYSGC’s Executive Director disputes claims, stating proper procedures were followed, while the inspector general’s efforts to enhance transparency and independence continue.
At the start of August 2023, the commission also denied a commenter’s request to change Daily Fantasy Sports rules to allow pick ’em-style player games. In an August 2, 2023, register update, the gambling regulator’s argument was that daily fantasy sports contests which are similar to prop bets are essentially sports betting.
Latest Monthly Sports Betting Numbers
Recently, the commission also issued its monthly report on the state’s mobile sports betting market for July 2023, which is usually slow for betting volume. For the month, the handle decreased for the fourth month in a row. However, these numbers were a hefty improvement over July 2022, as on a year-over-year basis, volume upped by 20% while revenue spiked by 43%.
Source: Munson, Emillie “Complaints about New York gambling flood newly independent watchdog” Times Union, August 17, 2023
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