U.S. Senator Brian Schatz is set to introduce a new bill aimed at prohibiting micro prop bets in sports events and granting the Federal Trade Commission (FTC) the power to target companies that knowingly support illegal offshore gambling.
This initiative was highlighted during a Senate Commerce subcommittee hearing focused on sports betting, where lawmakers and industry experts raised concerns about offshore operators and the micro prop betting market.
Schatz explained that the proposed legislation would enable the FTC to take action against payment processors that facilitate transactions for illegal offshore sportsbooks. He emphasized, “We believe there is a legislative path forward. While this won't resolve every issue related to gambling, empowering the FTC to act against payment processors is a significant step.”
He further elaborated that the FTC would have the authority to prevent these processors from engaging with offshore betting sites that fail to comply with federal regulations concerning micro prop bets.
The legislation also aims to ban micro prop bets in sports games entirely. During the hearing, Schatz pointed out the risks associated with these types of wagers, which focus on specific moments or actions within sporting events.
“Micro prop bets can be manipulated by players or others involved,” Schatz stated. “The more specific the bet, the greater the risk to the integrity of the game. Additionally, they contribute to the addictive and algorithm-driven gambling issues we face. This is a pressing problem that requires immediate attention.”