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Read Full BioNew Jersey held a hearing this week to discuss the merits and drawbacks of implementing a ban on micro betting. Micro bets are wagers on specific actions during a sporting event, often under the control of one individual, for example, the next pitch in baseball or the next possession in basketball.
Rep. Dan Hutchison introduced bill A5971 earlier this year and spoke at the hearing. Hutchison said he was shocked at the frequency of gambling ads and warned that companies are encouraging bettors to gamble beyond their means.
Hutchison stated, “What these companies want is for you to bet as frequently as physically or financially possible. Yesterday, I’m listening to one ad on the radio, and the little caveat at the end said you have to place 50 bets per day, something like that. It’s these types of enticements that are attracting people.”
Hutchison’s bill would ban “a proposition bet placed live during a sporting event that relates to the outcome of the next play or action.” If lawmakers approve the legislation, sportsbooks accepting micro wagers would face fines ranging from $500 to $1,000.
Micro Betting Gives Gamblers Dopamine Hit
The Council on Compulsive Gambling of New Jersey (CCGNJ) supports the bill as a way to reduce gambling harm. Speaking on behalf of the group, Jean Swain said micro betting can lead to serious gambling problems.
She stated, “These high-frequency wagers from every player action can trigger instant dopamine releases in the brain’s reward system, fostering compulsive behaviors that can develop into serious addiction.”
Swain cited her own struggles with gambling and, from her experience, said gamblers need time to take a step back to collect their senses. She added, “We need to have a way to slow down. And if it’s in our face continuously, while we are feeling the action, we will continue to reach for it. We have to be able to breathe in between hits, just at least a breath.”
Micro bets have been compared to slots due to their fast-paced nature. Research has shown slot machines to be the most addictive form of gambling. While lawmakers are proposing a ban on micro bets, New Jersey residents can continue to play slots online. The state has reported record revenue increases from online casinos this year.
Ohio Limits MLB Micro Bets
Other states have also moved to restrict the wagers. Ohio’s Governor Mike DeWine has been a vocal opponent of micro bets, and agreed to a deal with MLB and sportsbooks to limit the amount gamblers can stake on the wagers. DeWine compromised from his initial wish to completely ban the bets, and the state has now implemented a $200 limit.
DeWine’s calls for restrictions on prop betting have intensified in the wake of the MLB betting scandal involving Emmanuel Clase and Luis Ortiz.
The two Cleveland Guardians pitchers are alleged to have accepted bribes to deliberately throw balls outside the strike zone for betting purposes. Both players protest their innocence, with a trial expected to begin in May next year.
SBA Says Legal Wagers Help Detect Spot-Fixing
Rather than micro bets leading to scandals, such as those involving Clase and Ortiz, the Sports Betting Alliance (SBA) suggests that it is because of the bets that spot-fixing can be detected.
Zachary Khan spoke on behalf of the group, which includes the country’s major sportsbooks, and opposes the bill. At the hearing, Khan argued that micro bets were like setting a trap to catch spot-fixers. He stated, “I do want to flag for this committee that [micro-betting] is actually one of the more effective tools that regulators and operators rely on.
“Microbets account for a small share of overall wagering, but they generate highly granular real-time data. Pitch-by-pitch wagers and other micro bets often provide the earliest indicators of suspicious activity, because irregular patterns stand out immediately.”
This kind of activity would not be detected if micro bets were made illegal, the SBA argues. The group has campaigned against restrictions on legal sports betting, claiming it will drive bettors to unregulated betting platforms and illegal bookies.
New Jersey Pushing Ban on College Prop Bets
New Jersey has also pushed for a ban on college prop bets. Bill S3080 passed through a Senate committee earlier this year, but awaits further approval in the Senate and the House.
At the same time, a case earlier this year highlighted the risks of overregulation. New Jersey announced charges against 14 individuals alleged to be running an illegal gambling network that generated over $2 million. The Mafia-backed operation targeted college campuses, although the nature of the wagers was not revealed.
The meeting concluded without a vote on the bill. The New Jersey legislative session ends on January 16. The bill will have to move fast if it is to be passed before then.
