New Jersey Lawmakers Hear Bill to Ban Micro-Betting
New Jersey lawmakers held a hearing on a proposal to prohibit the offering and acceptance of micro-bets by licensed sportsbooks.
Assemblyman Dan Hutchison introduced Bill A5971 in July, asking the New Jersey Legislature to outlaw a category of in-play wagers known as micro-bets. The draft measure would bar sports wagering licensees from accepting proposition bets placed live that relate to the outcome of the next play or action of a sporting event. Noncompliance would be treated as a disorderly person's offense, carrying fines of $500 to $1,000 per incident.
At the hearing, Hutchison framed the proposal as a consumer-protection step aimed at curbing highly repetitive wagering. "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", he said.
Representatives from treatment and advocacy groups emphasized the bill’s public-health rationale. Jean Swain, speaking for the Council on Compulsive Gambling of New Jersey (CCGNJ), warned that micro-betting can create a persistent cycle of reinforcement among younger and vulnerable bettors. "Recent conversations with young people reveal that the allure of in-game betting and having skin in the game increasingly influences their engagement with sports or sports betting. 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 said.
Industry voices pushed back, arguing that a ban could undermine monitoring and market integrity tools. Zachary Khan, representing the Sports Betting Alliance (SBA), described micro-bets as a source of granular, real-time data that can help detect anomalies. "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", Khan told the committee.
The discussion highlighted a classic regulatory trade-off: limiting product features that may increase harm versus preserving data signals that can assist in early identification of match manipulation or suspicious betting patterns. Officials at the New Jersey Division of Gaming Enforcement (DGE) were not on the record at the hearing, but the regulator has previously flagged in-play markets as a compliance priority.
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Regulatory Challenges and Industry Response
Policymakers face practical questions if the bill advances. One technical challenge is defining and policing the line between prohibited "next-play" propositions and permissible live markets that span longer intervals. Enforcement will likely involve both rulemaking and cooperation with operators to modify product feeds and latency controls. Operators argue that real-time telemetry – the very system that enables micro-bets – also supplies the suspicious-activity reports regulators rely on.
The debate in Trenton comes amid other recent legislative activity affecting the state’s gambling market. In July, Governor Phil Murphy signed legislation restricting partnerships between sportsbook operators and state public universities, signaling continued legislative scrutiny of gambling-sector practices and promotions.
Supporters of the ban say the measure would protect younger sports fans and those susceptible to compulsive behavior; opponents warn it may reduce valuable integrity data and push bettors toward unregulated alternatives. The bill remains under consideration following the hearing; it could be revised in committee before any floor votes.
Observers say the next phase will be stakeholder consultations between lawmakers, regulators, advocacy groups and operators. How New Jersey resolves this issue may influence other jurisdictions grappling with the rapid proliferation of in-play wagering and the trade-offs between consumer protection and market oversight.
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