New Jersey Legislator Introduces Bill to Ban 'Micro' Sports Betting

A New Jersey lawmaker is proposing to turn the Garden State into an inhospitable place for the fast-paced world of wagering known as microbetting, wherein gamblers can get down on the result of the next pitch or play in a baseball or football game. 

Democratic Assemblyman Dan Hutchison announced on Friday that he has introduced Bill A5971, which would ban sportsbook operators in New Jersey from offering or accepting microbets. 

The legislation would define microbets as “a proposition bet placed live during a sporting event that relates to the outcome of the next play or action,” and make those markets off limits for New Jersey sports betting sites. 

Someone caught breaking the proposed law would be subject to a disorderly person’s offense and fines ranging from $500 to $1,000 per violation, a press release said.

“The pace of micro betting is designed to keep people gambling constantly, making one impulsive bet after another with little time to think,” Hutchison said in the release. “This bill is a commonsense step to slow that cycle down and protect individuals from the financial and emotional harms that can come with excessive betting.”

From micro to macro

Hutchison’s legislation comes as lawmakers in the Garden State, which led the charge for widespread legalized sports betting in the U.S., have been revisiting and adjusting their policies toward the industry.

One of the proposed changes that was ultimately adopted by lawmakers was hiking the tax rate for online sports betting, iGaming, and fantasy sports operators to 19.75%. While that was lower than the 25% initially proposed by Gov. Phil Murphy, it still wound up being a decent-sized increase for the industry.

New Jersey lawmakers also passed a ban on sweepstakes casinos, a prohibition on colleges and universities partnering with sports betting companies, and have proposed a crackdown on college player prop betting this past year.

A microbetting ban could further crimp the revenues of online sports betting operators that have embraced this kind of wagering. DraftKings, for example, acquired microbetting company Simplebet last year in an approximately $80-million deal.

Setting some boundaries

Hutchison’s release added that he believes microbets “are easier to fix than many more traditional forms of wagering” and that there have been “several reported cases” of athletes who were investigated for allegedly altering their play because of those wagers.

While he gave no examples, Hutchison's bill follows reporting that Major League Baseball is investigating Cleveland Guardians pitcher Luis Ortiz in connection with two pitches in two different games. MLB commissioner Rob Manfred has recently said certain bet types “strike me as unnecessary and particularly vulnerable.”

“This legislation isn’t about banning sports betting. It’s about setting boundaries to ensure it’s done responsibly,” Hutchison said in his release. “By banning micro bets, we would be taking a clear stand against predatory practices that push people toward irresponsible gambling habits.”

The assemblyman also cited statistics from the National Council on Problem Gambling and the Council on Compulsive Gambling of New Jersey, which he said reported a 277% increase in calls to their problem gambling helpline since the state legalized sports betting.

“The evidence underscores that micro betting can accelerate the path to problem gambling, especially among vulnerable populations such as youths and individuals with a history of compulsive gambling,” said Luis Del Orbe, executive director of the Council on Compulsive Gambling of New Jersey, in Friday’s release. “By eliminating micro betting, this legislation would take an essential step toward protecting citizens from the harmful effects of reckless gambling practices.”