New Jersey Proposes Ban on Microbetting in Sports Gambling
Introduction to the Proposed Legislation
A New Jersey legislator has introduced a new bill aiming to restrict the rapidly expanding practice of microbetting in sports wagering. Assemblyman Dan Hutchison, a Democrat, proposed Bill A5971 to stop sportsbooks in the state from offering bets on very brief in-game events, such as individual plays or pitches that occur within seconds.
What is Microbetting and Why the Concern?
Microbetting allows gamblers to place wagers on specific moments within a sporting event, like the next pitch in a baseball game or the subsequent play in football. While its popularity is growing, Hutchison argues that this fast-paced betting encourages impulsive and continuous gambling without giving bettors adequate time to think between bets.
He has described this legislation as a reasonable measure to reduce the cycle of rapid, relentless wagers and help protect individuals from the emotional and financial consequences associated with excessive betting.
Penalties and Enforcement
Under the proposed bill, sportsbooks that continue to offer microbetting options may face fines ranging from $500 to $1,000 per violation. Violations would be classified as disorderly persons offenses, creating a legal deterrent for providers considering such bets.
Context Within New Jersey’s Broader Gambling Regulations
This bill is part of New Jersey’s ongoing efforts to regulate and moderate the swiftly growing gambling industry. Recent legislative actions include increasing tax rates on online sports betting and iGaming, banning sweepstakes-style casinos, and preventing sportsbooks from partnering with public colleges and universities. The state is also working on limiting prop bets related to college athletes.
The Growing Market for Microbetting
Despite regulatory scrutiny, microbetting remains an attractive segment for major gambling operators. For instance, DraftKings acquired the microbetting platform Simplebet for approximately $80 million last year. Caesars Entertainment also signed a multi-year deal with Simplebet in late 2022 to offer microbetting services.
Concerns About Integrity and Responsible Gambling
Assemblyman Hutchison emphasizes the importance of setting boundaries rather than banning sports betting outright. He highlights that microbets are tougher to regulate and more vulnerable to manipulation, citing reported instances where athletes may have adjusted their performance to affect microbet outcomes. One recent example includes Major League Baseball investigating suspicious pitches by Cleveland Guardians pitcher Luis Ortiz.
MLB Commissioner Rob Manfred has expressed concerns over the vulnerability of certain microbet types to corruption.
Addressing Problem Gambling
The bill also addresses public health concerns, with Hutchison noting a 277% increase in calls to New Jersey’s problem gambling helpline since the legalization of sports betting. The Council on Problem Gambling of New Jersey supports the proposed restriction, with its executive director, Luis Del Orbe, stating that eliminating microbetting is a vital step to protect citizens from the dangers of reckless gambling.