Legislators in New Jersey have taken a significant step by advancing Senate Bill 2160, which seeks to prohibit 'micro bets' on the immediate outcomes of plays in sports games.
The Senate State Government, Wagering, Tourism, and Historic Preservation Committee voted on March 23 to push forward with this bill, which is sponsored by Senators Paul Moriarty and Patrick Diegnan. Proponents of the legislation argue that micro betting poses increased risks related to gambling integrity and addiction.
SB 2160, which is a continuation from the previous session, provides examples of micro bets, such as wagering on whether the next pitch in a baseball game will be a strike or whether the next play in football will be a run or a pass.
If the bill is passed into law, it would prevent sportsbooks in New Jersey from offering or accepting these types of bets. Offenders could face fines ranging from $500 to $1,000 for each violation, classified as a disorderly persons offense.
Senator Moriarty highlighted that the rapid nature of micro betting increases the potential for manipulation compared to traditional bets. Insiders could exploit their knowledge of upcoming plays to mislead regular bettors, undermining the fairness of the game.
Moreover, the addictive nature of micro bets is a major concern, as these bets are often based on quick outcomes, allowing bettors to place numerous wagers in a short time. This can lead to a dangerous cycle of impulsive gambling and significant financial losses.
While New Jersey does not release specific data on micro betting, it is part of the larger trend of in-game wagering, which has become integral to sportsbook operations. Research from Rutgers University indicates that in-game betting constitutes a substantial portion of betting activities, with two-thirds of bettors engaging in such wagers.
DraftKings CEO Jason Robins noted in a recent earnings call that live betting made up over half of the company's total handle, reflecting the growing importance of in-game betting in the industry.