The New Jersey Assembly's Tourism, Gaming, and the Arts Committee has taken a significant step by advancing bill A3258, which seeks to ban online micro betting. This marks the second micro betting initiative to progress in the state this year, following a similar proposal that received approval from a Senate committee in March.
Micro betting is defined in the bill as live proposition wagers concerning the outcome of the next play or action in a sporting event. For instance, it includes bets on whether the next pitch in baseball will be a strike or if the next football play will result in a run or a pass.
Proponents of the bill argue that micro betting can lead to impulsive gambling, as it allows bettors to place numerous wagers in a brief timeframe. Assemblymember Dan Hutchison, the bill's sponsor, emphasized the need for evolving safeguards alongside the rapid growth of sports betting. He stated, “Micro betting moves at a pace that leaves little time for reflection and can encourage impulsive decision-making. This legislation strikes a balance by preserving legal sports wagering while limiting one of its riskiest online forms.”
Initially, bill A3258 aimed to prohibit all sportsbooks from offering micro bets. However, the committee amended it to restrict the ban to online betting only. Under the revised bill, sportsbooks would still be allowed to offer micro bets at physical sports wagering lounges and through self-service betting machines at licensed venues.
Operators who violate the ban on online micro bets could face fines ranging from $500 to $1,000 per wager. Assemblyman Cody Miller noted that the legislation addresses concerns regarding the rapid pace of mobile wagering, which can blur the line between entertainment and habit.
The bill also highlights issues related to problem gambling and integrity. Lawmakers pointed out that while micro betting keeps fans engaged in every moment of a game, it also reduces the time bettors have to research their wagers, leading to quick losses. Additionally, the legislation cites that micro bets can exacerbate problem gambling, offering bettors the allure of immediate rewards.
According to the National Council on Problem Gambling, approximately eight million Americans struggle with gambling issues. The bill references a staggering 277% increase in calls to the Council on Compulsive Gambling of New Jersey since the legalization of sports betting.
Concerns about integrity were also raised, with lawmakers arguing that micro bets are more susceptible to manipulation compared to traditional betting forms, as they focus on single plays rather than the overall game outcome. The bill notes several investigations into professional athletes who allegedly altered their performance to fulfill the conditions of micro bets.
In addition to the Assembly's proposal, a Senate version is also under consideration, which may impose even stricter regulations.