New Jersey Assembly Committee Advances Online Micro-Betting Ban

The New Jersey Assembly Tourism, Gaming, and the Arts Committee advanced A3258 on Monday, moving forward a proposal that would prohibit online micro betting. A companion measure cleared a Senate committee in March.

The bill defines a micro bet as a live proposition wager concerning “the outcome of the next play or action occurring in the sport or athletic event.” Examples include wagers on whether the next baseball pitch will be a strike or whether the next football play will be a run or a pass.

Bill supporters argue that micro betting can encourage impulsive gambling by allowing bettors to place a high volume of wagers within a short period.

Assemblymember Dan Hutchison, who sponsors the measure, said in a statement.

Sports betting has expanded significantly in recent years, and with that growth comes a responsibility to make sure safeguards evolve as well.”

“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.”

Assembly Committee Amends the Bill

As introduced, A3258 would have prohibited sportsbooks from offering or accepting any micro bets.

However, the committee amended the measure to apply only to online betting. Under the amended bill, sportsbooks would still be permitted to offer micro bets at sports wagering lounges and through self-service wagering machines located at licensed facilities.

Under the legislation, operators that offer prohibited online micro bets would face fines ranging from $500 to $1,000 per wager.

Assemblyman Cody Miller said the legislation is intended to address concerns associated with the speed of mobile wagering.

When wagers can be placed with a few taps every few seconds, it becomes easier for gambling to shift from entertainment to habit,” Miller said.

Bill Cites Problem Gambling and Integrity Concerns

In the bill’s findings, lawmakers argue that micro betting has become increasingly popular because it allows fans to remain engaged in every play of a sporting event.

However, they contend that bettors have “less time to research and consider the details of their wagers before placing them.” Meanwhile, losses “can accumulate quickly.”

The legislation further states that micro bets can contribute to problem gambling. That’s because they offer “the possibility of a near immediate reward to the bettor.”

A 3258 cites the National Council on Problem Gambling’s estimates that as many as eight million Americans suffer from problem gambling. The bill notes that the Council on Compulsive Gambling of New Jersey has experienced a 277% increase in calls following the legalization of sports betting.

Lawmakers also raised integrity concerns. They argue that micro bets “are easier to fix than many more traditional forms of wagering” because they focus on a single play or action rather than the outcome of an entire game.

The bill further notes that there have been “several reported cases of professional athletes being investigated for altering their performance to meet the terms of wagers on a micro bet.”

Senate Version Would Go Further

The Assembly measure is not the only proposal moving through the Legislature.

In March, the Senate State Government, Wagering, Tourism, and Historic Preservation Committee advanced S2160, a similar bill sponsored by Sens. Paul Moriarty and Patrick Diegnan. Unlike the amended Assembly version, S2160 would ban micro betting altogether, including at retail sportsbooks.

After the bill’s advancement, Sen. Moriarty said that micro betting poses a greater integrity risk and is more addictive than traditional wagers.

The measure was referred to the Senate Budget and Appropriations Committee, which has yet to take it up for discussion.

Micro Betting Draws Both Scrutiny and Support

The New Jersey legislative push comes as micro betting has attracted increased attention from policymakers, responsible gaming advocates, and the broader gambling industry.

Earlier this year, the Public Health Advocacy Institute filed a lawsuit against DraftKings, FanDuel, the NFL, and Genius Sports. The complaint alleges that micro betting products contribute to gambling addiction by enabling rapid, repetitive wagering opportunities. Those claims echo the concerns of New Jersey legislators.

At the same time, the industry has embraced the product, which is rapidly growing in popularity. The Sports Betting Alliance, representing some of the largest sportsbooks, including DraftKings and FanDuel, has opposed the New Jersey proposals.

That debate could soon extend beyond traditional sportsbooks.

Speaking at the Milken Institute Global Conference in May, DraftKings President of Global Product and Technology Paul Liberman said he expects micro betting to become part of sports prediction markets over time.

That could be sooner than later. In late May, DraftKings-owned Railbird Exchange self-certified its first sports event contracts with the Commodity Futures Trading Commission (CFTC).

Some of the fillings reference “time period” structures within games. The language could allow contracts tied to portions of sporting events, in addition to final outcomes. It suggests that DraftKings may be positioning Railbird to eventually support micro betting-style products under a federally regulated framework.