The landscape of the American sports betting market is facing its most significant legislative challenge to date. On Wednesday, New York lawmakers introduced Assembly Bill A9636, a sweeping measure that would effectively outlaw player proposition bets and in-play wagering across the Empire State. The bill, sponsored by Assemblymember Carrie Woerner, arrives amidst a growing firestorm over sports integrity and athlete safety, threatening to upend the business models of major operators like FanDuel and DraftKings in the nation’s most lucrative betting market.

Assembly Bill A9636: A Drastic Overhaul of NY Betting Regulation

Assembly Bill A9636 represents a fundamental shift in New York betting legislation. If passed, the bill would restrict legal sports wagers solely to the "final outcome, score, or winner" of a sporting event. This language explicitly prohibits player prop restrictions—bets on individual statistics like points scored, rebounds, or passing yards—and eliminates the rapidly growing market of in-play or "live" wagering.

The legislation imposes severe penalties for non-compliance. Operators found offering prohibited bets could face fines of up to $100,000 per violation, with repeat offenses potentially leading to license suspension. "The goal is to return sports betting to its traditional roots and eliminate the micro-betting formats that are most susceptible to manipulation," Woerner stated during the bill’s introduction. The proposal has been referred to the Assembly Committee on Racing and Wagering, where it is expected to spark intense debate during the NY sports betting regulation 2026 session.

Integrity Scandals and Athlete Harassment Drive Reform

The push for a New York prop bet ban is largely a response to a series of high-profile sports betting integrity scandals that plagued professional leagues throughout 2025. Investigations into player performance manipulation—specifically concerning "under" bets on player props—have eroded public confidence. Lawmakers argue that granular betting markets provide too many opportunities for bad actors to influence outcomes on a micro-level without altering the final score of a game.

Protecting Athletes from Digital Abuse

Beyond integrity concerns, the bill addresses the escalating issue of athlete harassment. The sheer volume of prop bets has led to a toxic environment where collegiate and professional athletes face torrents of social media abuse from disgruntled bettors losing wagers on specific stats. By removing the incentive to bet on individual performances, supporters of A9636 believe the legislation will significantly reduce the targeted harassment that has become a dark side of the industry's expansion.

Economic Fallout: The Sportsbook Revenue Impact

Industry analysts warn that the passage of A9636 would be catastrophic for operator bottom lines. Player props and in-play betting have grown to account for a massive share of the handle; recent data suggests these markets comprise nearly 70% of wagers for some operators during NFL and NBA seasons. A ban of this magnitude could result in a sportsbook revenue impact of nearly 40% annually, costing the state hundreds of millions in tax revenue earmarked for education.

Operators argue that such restrictive measures will not stop bettors but rather push them back toward the unregulated offshore market. "This bill doesn't solve the integrity issue; it simply exports New York bettors to illegal sites that offer no consumer protections," noted a spokesperson for a leading industry trade group. As the 2026 legislative session gains momentum, the battle over A9636 will likely define the future of regulated sports betting in the United States.