The state’s inspector general received 481 gaming complaints last year, with 228 involving mobile sports wagering
Timothy Fanning
August 21, 2026
Mobile sports betting accounted for nearly half of the gaming complaints made to the New York inspector general’s office last year, as the state continues to emphasize the market’s tax benefits.
Of the 481 gaming-related complaints the government watchdog received in 2025, 228 involved mobile sports wagering, according to an annual report the inspector general’s office released Friday.
Those figures “underscore the growing role digital wagering platforms play in New York’s gaming ecosystem and the increasing volume of consumer disputes arising from that activity,” the report concluded.
The inspector general’s office report is vague. It does not divulge the nature of the complaints, noting only that they may include allegations involving operators, regulators, account handling or other conduct.
The state watchdog said it opened nine investigations involving fraud, corruption, abuse or other misconduct. It referred 88 complaints to the state Gaming Commission, according to the report, which does not indicate whether those investigations or referrals were related to mobile sports betting.
New York’s mobile sports-wagering market began in 2022. Every year since then, the inspector general’s office has noted a marked rise in the number of complaints it receives.
The office saw nearly 150% more complaints in the year mobile sports wagering began. By 2024, complaints had reached 591, a 59% increase over the year before. More than half of those complaints — 305 — involved mobile sports-wagering vendors, the inspector general noted.
The Gaming Commission’s latest report recorded more than $26 billion in mobile wagers and $2.6 billion in gross gaming revenue. New York imposes a 51% tax on mobile sports-wagering gross gaming revenue. The proceeds are supposed to go toward education and help fund youth sports and problem-gambling services, a point touted by Gov. Kathy Hochul when the state announced a lawsuit against Kalshi last month.
Hochul also said the state’s gambling laws are designed to protect consumers and prevent problem gambling.
In a statewide convenience survey released by the Office of Addiction Services and Supports, 65% of the 3,470 respondents who had gambled in the previous year reported consequences that could indicate harm from a gambling disorder. The survey had a fairly small sample size and was not exactly representative of the population.
