2025 Annual Report on Gaming Commission Oversight

2025 ANNUAL REPORT

NEW YORK STATE GAMING COMMISSION OVERSIGHT

Bringing the Public into Public Integrity

OUR MISSION Fostering confidence in New York State government by promoting integrity and transparency through oversight of covered agencies, their employees, and those doing business with the State.

WHO WE ARE The Offices of the Inspector General (“OIG”) are comprised of three offices, derived from three appointments held by Inspector General Lucy Lang: The Office of the New York State Inspector General (“NYSIG”), which is entrusted with the responsibility of investigating complaints of corruption, fraud, criminal activity, conflicts of interest, and abuse in the Executive Branch agencies and entities in New York State government.

The Office of the New York State Welfare Inspector General (“OWIG”), which is responsible for maintaining the integrity of New York State’s public assistance programs; and The Office of the New York State Workers’ Compensation Fraud Inspector General (“WCFIG”), which is responsible for investigating violations of the laws and regulations pertaining to the operation of the workers’ compensation system.

REPORT CORRUPTION, FRAUD, AND ABUSE Hotline 1-800-DO-RIGHT (367-4448)

Online Complaint Form ig.ny.gov

Email inspector.general@ig.ny.gov

Social Media @NewYorkStateIG

NEW YORK STATE GAMING COMMISSION OVERSIGHT 2025 ANNUAL REPORT

A WORD A WORD FROM FROM THE THE INSPECTOR GENERAL INSPECTOR GENERAL

Lucy Lang

As the Offices of the New York State Inspector General marks its 40th anniversary, I am pleased to share our 2025 Annual Report on Gaming Commission Oversight, highlighting our work to promote integrity and accountability across one of New York’s most rapidly evolving industries.

For four decades, OIG’s work has been rooted in the principle that strong, independent oversight is essential to maintaining public confidence in government. That responsibility requires us not only to respond to misconduct, but also to evolve alongside the agencies and programs we oversee.

As the gaming landscape expands and changes, especially with the continued growth of mobile sports wagering and the issuance of three new downstate commercial casino licenses, so too must the systems designed to safeguard its integrity and maintain public confidence.

In 2025, OIG received 481 gamingrelated complaints, nearly half of which related to mobile sports wagering.

Alongside our review of those matters, we continued to emphasize proactive oversight, recognizing that our ability to identify and address concerns is TKTKTKTK

strengthened when people understand our role and know how to reach us.

OIG conducted 15 in-person and four virtual trainings for more than 400 Gaming Commission staff across the State. These sessions reinforced key responsibilities and reporting obligations, explained OIG’s role as an independent oversight agency, and created opportunities for Commission personnel to engage directly with our team.

Beyond formal training, OIG participated in conferences, meetings, and events that connected our staff with licensees, vendors, racing participants, lottery retailers, legislators, Commission personnel, and other stakeholders.

As we reflect on 40 years of oversight and look toward the future, our commitment remains constant. OIG will continue adapting its approach through proactive engagement, targeted investigations, data-driven complaint analysis, and coordination with the Gaming Commission and law enforcement partners to help ensure that New York’s gaming sector operates with transparency, accountability, and the confidence of the public.

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BRINGING THE PUBLIC INTO PUBLIC INTEGRITY

EXECUTIVE SUMMARY 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. The Commission, headquartered in Schenectady, NY, maintains a physical presence at horse racing tracks, casinos, and State Lottery field offices throughout the State, and is responsible for licensing a wide range of operators and employees, including lottery retailers and casino and racetrack employees, which it effectuates through various internal oversight divisions.

Since June 2021, the New York State Inspector General has been charged by the legislature with receiving and investigating complaints from any source regarding allegations of corruption, fraud, criminal activity, conflicts of interest or abuse in the Commission and undertaking proactive initiatives aimed at preventing, detecting, and/or eliminating such concerns.

481 481 COMPLAINTS

Over the past year, OIG continued its active and statewide oversight of the Commission, receiving 481 complaints, initiating targeted investigations, and expanding outreach and training to strengthen integrity across New York’s gaming sector.

A significant portion of these complaints — nearly half (228) — related to mobile sports wagering (MSW), reflecting the market’s rapid growth and a corresponding rise in consumer-facing disputes. While many of these complaints fall within the Commission’s regulatory authority, OIG’s review remains critical to identifying patterns of misconduct, regulatory gaps, and potential systemic risks.

Of the complaints received, OIG opened nine matters for full investigation, focusing its resources on allegations with the greatest potential impact on public integrity and State operations. The majority of other complaints were referred to the Commission or appropriate enforcement partners, with OIG maintaining oversight to ensure appropriate follow-up.

Beyond reactive investigations, OIG continued to prioritize proactive oversight, conducting statewide training and outreach to Commission staff, licensees, and stakeholders. These efforts are essential to preventing misconduct, reinforcing reporting obligations, and promoting a culture of transparency and accountability.

Pursuant to its statutory authority, OIG serves as an independent oversight body responsible for detecting, investigating, and preventing corruption, fraud, criminal activity, conflicts of interest, and abuse within State entities, including the Commission. As New York’s gaming industry continues to expand — including tktktktk 3

NEW YORK STATE GAMING COMMISSION OVERSIGHT 2025 ANNUAL REPORT the Commission. As New York’s gaming industry continues to expand — including through mobile wagering and newly licensed downstate casinos — OIG’s role is critical to ensuring that this growth is matched by strong oversight and sustained public confidence.

PURPOSE & PURPOSE & SCOPE SCOPE OF OF ANNUAL REPORT 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 work, outreach, and training conducted in furtherance of that mandate. 1

INTRODUCTION & INTRODUCTION & BACKGROUND BACKGROUND The Upstate New York Gaming Economic Development Act of 2013 was enacted to create jobs, increase school aid, provide property tax relief, authorize destination resort gaming, and consolidate the New York State Racing and Wagering Board and the Division of the Lottery into the Commission. The Commission now regulates all legal gaming activity in the State, including horse racing; charitable gaming, such as bell jars, bingo, casino nights, and raffles; the State Lottery; Indian, video lottery, and commercial gaming; interactive fantasy sports; and, most recently, MSW. The Legislature also determined that it was “essential to maintain the public 2 confidence and trust in the credibility and integrity of legalized gaming activities” and, to that end, specifically created the Office of the Gaming Inspector General (OGIG). OGIG was tasked with investigating allegations of corruption, fraud, criminal activity, conflicts of interest, or abuse within the Commission; periodically reviewing its policies and procedures; recommending measures to combat misconduct; preparing and publicly releasing written reports of its investigations, as appropriate; referring findings, when necessary, for disciplinary action or civil or criminal prosecution; establishing training programs; and coordinating with other law enforcement organizations. The Commission and OGIG were officially formed on February 1, 2013.

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BRINGING THE PUBLIC INTO PUBLIC INTEGRITY 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 3 Commission and the Gaming Inspector General.” Effective June 2021, the PML transferred the former OGIG’s duties and responsibilities to OIG, thereby increasing the personnel available to investigate gaming-related complaints.4

LEADERSHIP LEADERSHIP In 2024, Inspector General Lucy Lang appointed Rachel Brown as the Attorney-in-Charge (AIC) of Gaming Matters. AIC Brown joined OIG as investigative counsel in January 2023. She previously served as an assistant district attorney in the New York County District Attorney’s Office, where she investigated and prosecuted felony cases involving sexual assault, illegal firearms possession, and fraud at the grand jury and trial levels. Since joining OIG, Brown has investigated complex public benefits fraud, workers’ compensation abuse, criminal activity by State employees, and Rachel Brown misconduct in the gaming industry. She has Attorney-In-Charge demonstrated exceptional legal and investigative Gaming Matters expertise, developed productive partnerships with external agencies and law enforcement enforcement, and served as a valued mentor. In her current role, AIC Brown serves as both a subject matter expert and the leader of the Office’s gaming-related investigations and oversight across New York State. Under her leadership, OIG continues to address the growing complexities of gaming oversight and safeguard the integrity of this large-scale industry.

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NEW YORK STATE GAMING COMMISSION OVERSIGHT 2025 ANNUAL REPORT

COMPLAINTS COMPLAINTS In 2025, OIG received 481 gaming-related complaints through multiple intake channels, including its online complaint form, email, hotline, social media, U.S. Mail, and referrals.

Complaints were concentrated in several key areas: Gaming 13.5% Other 28.1%

Charitable Gaming 2.3% Lottery 6.9%

Horse Racing & Pari-Mutuel Wagering 1.7%

Mobile Sports Wagering 47.5%

The volume of MSW-related complaints reflects both the rapid expansion of the market and the frequency of disputes between consumers and operators. While many of these matters involve customer service or promotional disputes properly handled by the Commission — such as a customer complaint that a particular promotion or bonus offer was not properly honored by a MSW vendor — OIG’s centralized intake and review function enables identification of trends, repeat actors, and potential systemic concerns.

All complaints undergo a structured review process led by OIG’s Case Management Unit and senior leadership. Matters are assessed for jurisdiction, investigative merit, and potential risk to public integrity. Complaints that do not fall within OIG’s jurisdiction are referred to the appropriate entity, including the Commission or law enforcement partners.

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BRINGING THE PUBLIC INTO PUBLIC INTEGRITY Where warranted, OIG initiates investigations using multidisciplinary teams of attorneys, investigators, and auditors. In 2025, OIG opened nine full investigations, prioritizing matters involving credible allegations of fraud, corruption, or abuse with potential systemic or financial impact.

88 88

REFERRED COMPLAINTS PENDING

9 9

FULL INVESTIGATIONS OPENED

Critically, OIG does not merely refer complaints – it maintains oversight of referred matters. As of the close of 2025, 88 complaints referred to the Commission remained pending, underscoring both the volume of incoming complaints and the importance of continued follow-up and accountability.

A LOOK A LOOK BACK BACK -- 2025 2025 Training of Commission Staff In 2025, OIG hosted 15 in-person training courses across the State and four virtual training courses for Commission staff. Attended by more than 400 people, the presentations provided an overview of the relevant statutory and regulatory framework and explained OIG’s role as an independent oversight agency. The courses introduced new staff to these topics, served as a refresher for experienced staff, and highlighted key responsibilities, expectations, and reporting obligations for Commission personnel. They also introduced Commission staff to AIC Brown, and provided opportunities for other OIG staff to meet Commission personnel, licensees, and vendors.

4 4

15 15

IN-PERSON TRAININGS

VIRTUAL TRAININGS

400 400

PEOPLE ATTENDED

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NEW YORK STATE GAMING COMMISSION OVERSIGHT 2025 ANNUAL REPORT

Public Awareness & Outreach In 2025, OIG continued to use Instagram, LinkedIn, Facebook, X (formerly Twitter), and Threads to increase public awareness of the Office’s role and work. As part of these efforts, OIG regularly shared gaming-specific content highlighting its oversight of the Commission.

OIG also participated in conferences, events, and meetings, including the Annual Racing and Gaming Conference; the New York Council on Problem Gambling Annual Conference; meetings of the New York External Fraud Committee and the International Association of Financial Crimes Investigators; and the New York State Association of Black, Puerto Rican, Hispanic & Asian Legislators Annual Legislative Conference. Through these engagements, OIG attended workshops and met with stakeholders, including horse owners and trainers, lottery retailers, representatives of off-track betting corporations, legislators, racing participants and officials, and Commission staff.

@NewYorkStateIG

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BRINGING THE PUBLIC INTO PUBLIC INTEGRITY

Three New Downstate Commercial Casinos In 2022, New York State approved a downstate casino bill that allowed the Commission to grant up to three downstate casino licenses.5 The licenses allow recipients to operate a full casino with slot machines and live table games (e.g., poker, roulette, blackjack).

Following the June 2025 application deadline, applicants underwent vetting by local Community Advisory Committees (CAC), with opportunities for public input.6 Ultimately, four applicants advanced through the CAC process: Bally’s Bronx in Ferry Point Park, Bronx; Resorts World NYC in Willets Point, Queens; Empire City Casino in Yonkers; and Hard Rock Metropolitan Park in South Ozone Park, Queens. MGM Resorts subsequently withdrew its bid for Empire City Casino in Yonkers. The three remaining applicants then passed reviews by the Gaming Facility Location Board, as well as the Commission, and were granted full commercial casino licenses in December 2025.7 Licensee

Proposal

Location

Bally’s

Bally’s Bronx

Ferry Point Park, Bronx

Mets owner Steve Cohen and Seminole Hard Rock Entertainment

Hard Rock Metropolitan Park

Willets Point, Queens

Genting America

Resorts World New York City

South Ozone, Queens (site of current Resorts World Casino)

Resorts World New York City is the only licensee that operated an existing video lottery gaming facility in downstate New York before receiving a full commercial casino license. Because it already had an established facility, Resorts World was able to open its full commercial casino more quickly than the other licensees, beginning live table game operations on April 28, 2026. Additional components of the project, including expanded hotel amenities, are expected to be completed by 2030.

Bally’s Bronx and Hard Rock Metropolitan Park are planned as new integrated casino-resort complexes, with both projected to open in mid-2030. The developments are expected to include hotels, dining, entertainment, and retail offerings; creating thousands of permanent jobs and generating significant tax 8 revenue for transit improvements and education funding. Upon opening, OIG intends to provide training for Commission staff assigned to each casino. The training will provide an overview of the relevant statutory and regulatory framework, and focus on key responsibilities, expectations, and reporting obligations for Commission staff.

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NEW YORK STATE GAMING COMMISSION OVERSIGHT 2025 ANNUAL REPORT

Sweepstakes Gaming Banned in New York In December 2025, Governor Kathy Hochul signed S.5935-A, prohibiting online sweepstakes games in New York State.9 Sponsored by Senator Joseph P. Addabbo Jr., Chair of the Senate Racing, Gaming and Wagering Committee, the law applies to internet- and mobile-based games that use dual-currency systems to offer cash or cash-equivalent prizes while simulating casino-style gaming.10 It authorizes the Commission, New York State Police, and New York State Attorney General’s Office to investigate violations, issue cease-and-desist letters and subpoenas, and pursue enforcement action.

Before the law’s enactment, OIG referred complaints involving online sweepstakes platforms to federal and State partners because the Commission lacked express enforcement authority in this area. With that authority now established, OIG can refer complaints directly to the Commission and monitor its response. Consumers should avoid these illegal, unregulated platforms, which lack the consumer protections, responsible gaming safeguards, and regulatory oversight required of authorized gaming operations.

Senate Bill 2025-S5935A

Prohibits online sweepstakes games and revenue from illegal markets, sets penalties, provides for enforcement of provisions.

- New York State Senate

Charitable Gaming & Electronic Bell Jars 11

In December 2025, Governor Kathy Hochul signed A.7475-B into law. Sponsored by Assembly Member Carrie Woerner, the legislation authorizes electronic versions of bell jars, charitable fundraising games long overseen by the Commission.

Traditionally, players purchase low-cost tickets, typically ranging from $0.25 to $2, and reveal covered symbols to determine whether they have won, with prizes reaching up to $1,000.12

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BRINGING THE PUBLIC INTO PUBLIC INTEGRITY While electronic versions of these games are expected to substantially increase charitable revenue, prior efforts drew opposition from the Seneca Nation of Indians and the New York State Gaming Association.13 As a result, the original bill was vetoed in 2018 by then Governor Andrew Cuomo over concerns that electronic bell jar machines too closely resembled slot machines, potentially violating the gaming compact between New York State and the Seneca Nation of Indians and raising risks around underage and problem gambling. The enacted law narrows those concerns by requiring simpler ticket-dispensing machines rather than slot-style gameplay and 14 by limiting the geographic area where machines are allowed.

Assembly Bill 2025-A7475B Authorizes and regulates the use of electronic bell jar vending machine, requires responsible placement of machines, and allows for geographic considerations for placement.

- New York State Senate

CONCLUSION CONCLUSION In 2026, OIG will expand its oversight of an increasingly complex and rapidly evolving gaming landscape, including the continued growth of MSW and the development of new downstate commercial casinos.

OIG will prioritize high-impact investigations, enhance data-driven complaint analysis, and strengthen coordination with the Commission and law enforcement partners. At the same time, OIG will continue to invest in proactive training and outreach, recognizing that prevention is a critical component of effective oversight.

As gaming in New York grows, so too must the systems that safeguard its integrity.

OIG remains committed to ensuring that the State’s gaming industry operates with transparency, accountability, and the full confidence of the public.

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NEW YORK STATE GAMING COMMISSION OVERSIGHT 2025 ANNUAL REPORT

NOTES NOTES [1] New York Racing, Pari-Mutuel Wagering and Breeding Law § 130.

[2] See Laws of New York, Chapter 60 of the Laws of 2012 §100.

[3] See FY 2022 Executive Budget Briefing Book, Revenue Actions, Gaming Initiatives, “Decouple the Gaming Commission and the Gaming Inspector General.”

[4] 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.

[5] Racing, Pari-Mutuel Wagering and Breeding Law Chapter 47-A, Article 13, Title 2-A. [6]Gaming Facility Location Board, NYS Gaming Facility Location Board Issues Updated Timeline to Ensure Robust Competition and Community Involvement (June 28, 2024) https://nycasinos.ny.gov/system/files/documents/2024/06/06.27.24.gflb_timeline.pdf; 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.

[7] New York State Gaming Commission, Commercial https://gaming.ny.gov/commercial-casinos (last visited March 3, 2026).

Casinos,

[8] Bally’s Bronx https://ballysbronx.com/ (last visited February 28, 2025) ; Metropolitan Park, https://www.metropolitanpark.com/ (last visited Feb. 28 2025) ; Resorts World New York City, RESORTS WORLD NEW YORK CITY SUBMITS TRANSFORMATIVE BID FOR COMMERCIAL CASINO LICENSE, ADVANCING $5.5 BILLION VISION TO BUILD WORLD-CLASS INTEGRATED RESORT IN QUEENS, NEW YORK Resorts World New York, https://rwnewyork.com/press-releases/resorts-world-newyork-city-submits-transformative-bid-for-commercial-casino-license-advancing-5-5billion-vision-to-build-world-class-integrated-resort-in-queens-new-york/ (last visited March 3, 2026).

[9] 10 Prohibits Online Sweepstakes Games And Revenue From Illegal Markets, S5935A, 2025-2026 Legislative Session (2025) https://www.nysenate.gov/legislation/bills/2025/S5935/amendment/A [10] ibid.

[11] Relates to Electronic Bell Jar Vending Machines, A7475B, 2025-2026 Legislative Session (2025) https://www.nysenate.gov/legislation/bills/2025/A7475/amendment/B 12

BRINGING THE PUBLIC INTO PUBLIC INTEGRITY [12] New York State Gaming Commission, Bell Jar, https://gaming.ny.gov/bell-jar (last visited March 3, 2026).

[13] Kate Lisa, Charitable groups, gaming venues clash on bell jar bill headed for Hochul's desk, Spectrum News December 5, 2025, https://spectrumlocalnews.com/nys/central-ny/politics/2025/12/06/charitablegroups--gaming-venues-clash-on-bell-jar-bill-headed-for-hochul-s-desk ; John Whittaker, Borrello Opposes Electronic Bell Jars, Cites Impact On Seneca Nation | News, Sports, Jobs - Post Journal, The Post Journal, June 17, 2025, https://www.postjournal.com/news/top-stories/2025/06/borrello-opposes-electronic-bell-jars-citesimpact-on-seneca-nation/.

[14] John Whittaker, Borrello Opposes Electronic Bell Jars, Cites Impact On Seneca Nation | News, Sports, Jobs - Post Journal, The Post Journal, June 17, 2025, https://www.post-journal.com/news/top-stories/2025/06/borrello-opposeselectronic-bell-jars-cites-impact-on-seneca-nation/.

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