NJ Proposed Bill Could See Microbetting Banned from Sportsbooks

The recent NBA betting scandal has rocked both sports and sportsbooks. It has prompted New Jersey to respond by proposing a ban on microbets, defined as live player props that concern the next play or action in the game. The goal is not to delist all player props, but to cut down specifically on micro bets – a type of bet that has emerged in the last few years and has become a hugely popular venture for bettors.

However, they are also highly criticized by lawmakers for creating additional risks to the well-being of bettors, and also for harming the integrity of the sports. Not many sportsbooks advertise these specific wagers as microbets – but anyone who uses sportsbooks will know of them and possibly have placed a few. The question is – are they really that dangerous – and on the subject of sport integrity, is banning microbets the way to go or should sportsbooks tighten their KYC and anti fraud policies to keep the sports clean?

What is Microbetting

Microbets are fast props bets that relate to events that settle in the next few minutes of play. They go by many different names, and each sportsbook has its own distinctive term for microbets, if it doesn’t just list them as props among the live betting markets. We have seen them being called:

• Flash Bets
• Lightning Bets
• Instant Bets
• Next Play Bets
• Rapid Bets
• Moment Bets

All the big US based sportsbooks like DraftKings, FanDuel, BetMGM, Caesars, and the rest have microbetting options. The idea behind these types of bets is that you are predicting what will happen next, and within a few minutes, if not sometimes seconds, that bet is either stamped a winner or a loser.

Examples of Microbets

Here are some examples that you may have seen at your sportsbook (if they do microbets).

NFL Microbets

• Next play outcome
• Drive result
• Next pass completion
• Yardage of next play

NBA Microbets

• Next shot outcome
• Next possession result
• Free throw result
• Next team to score

MLB Microbets

• Next pitch outcome
• Next batter result
• Inning result
• Next pitch speed over/under

Soccer Microbets

• Next goal method
• Next throw in/card/foul
• Next team to win a corner
• Goal within next 5 minutes

Some of these can really resolve in seconds, like whether the next pass will be completed in an NFL bet, or if you place a soccer bet on which team will get a corner next. Other bets can drag out for a few minutes, but not much longer. The idea is that you can place quickfire bets within the game, and these settle out within minutes.

The downside is that it means the average bettor can spend a whole lot more money on a game, because they can get stuck into countless minute markets and microbets, placing far more wagers than they would if they were simply betting a moneyline, totals, or point spreads on the final outcome of the game.

NJ Bill S4794 Proposing an Outright Ban on Micro Bets

New Jersey Senator Paul Moriarty put forth Bill S4794 in late October, which was put up for review by the Senate Government Committee. The bill would see sportsbooks strike microbets off their lists. It is not the first proposal to ban the controversial types of bets, as Assemblyman Dan Hutchinson of New Jersey wanted to ban micro betting in the state back in July. Bill A5971 cited the dangers of micro betting and how they provide recurrent psychological triggers, basically keeping bettors hooked and encouraging the habit of impulsive betting.

Under Bill S4794, New Jersey sportsbooks would be banned from accepting any wagers that fall under the definition of micro bets. Anyone found offering or taking these bets (sportsbooks and individuals), would be subject to a fine ranging from $500 up to $1,000 per violation. It is pretty damning, and having the fines extend to participants (the bettor who places the microbets) as well would surely discourage players from making any of these kinds of bets.

The law is nowhere near being passed, nor is it certain that the government will accept it. But the thing to take out of this law is that New Jersey regulators are seriously considering their options where microbetting is concerned.

Consensus Against Microbetting

Moriarty’s bill, if accepted, would make New Jersey the first state to ban microbetting. And doing it in such an influential state, this may well create a domino effect in other states with legal sports betting, ultimately bringing about the demise of micro betting. It’s not just lawmakers who are scrutinising microbets either.

The Commissioners of the NBA and MLB, Adam Silver and Rob Manfred, brought up the subject too. And the MLB is also working where it can to restrict micro prop bets because of the threats they pose to the integrity of the sport.

Harming the Integrity of Sports

The NBA insider betting scandal, headed by Bill Chauncey and Terry Rozier, drew massive attention from the US public. It didn’t just mire the reputation of the players involved, but it also brought up questions in regard to how sports betting is handled across the country. These types of scandals are really nothing new though. Digging a little, and you will find that every few months a new match fixing or betting scandal crops up – but these mostly happen in lesser followed foreign sports leagues, or, they happen with obscure college athletes. But for something of this magnitude to hit the NBA, it is no surprise that lawmakers are quick to react and look for a fix.

Microbetting, in the eyes of the law, is seen as one of those types of bets that can be vulnerable to manipulation and insider influence. A single player in an MLB game cannot really win or lose the match by himself. But he can strike out or miss his first two hits – something that some sportsbooks will let you bet on. Then, consider college sports, where the athletes are less financially stable and could be coerced into bribes or want to make more money off a game. It is no secret that college athletes are more vulnerable to coercion (or corruption) just due to their situation. The NCAA recently proposed to allow college athletes to bet on pro leagues, to create a safer and more controlled environment for them to gamble.

Player Well-Being and Addiction Risks

Besides the integrity of the sports, the other major argument is your (and other bettors’) well-being. While microbetting means you can go into finer details and find better value bets during a game, it also overloads bettors with tons of fast paced betting options.

You have to act fast to hit these wagers, and that can lead to some bettors forming potentially harmful betting responses. The rapid feedback loop of one microbet after another does create a similar psychological pattern to slots play, with repetitive bets and constant engagement – something that you wouldn’t otherwise get with pregame wagering or futures bets. You could theoretically place bet after bet in a game, without the same statistical analysis that you may do if you were placing a pregame wager.

With little to no time to research or do the analysis on a microbet, it can lead some bettors to bypass their rational decision making in favor of reckless and emotionally charged betting behaviors. Especially if you are placing one bet after the other and on a losing streak. The psychology of losing so many bets within such a short time frame can lead some to chase their losses or gamble more aggressively. These types of responses are definitely more tangible in the context of in-play micro bets than they are with pregame wagers.

Future of Microbetting in Sports

Sportsbooks will not go down without a fight, especially given the popularity of microbets. They could solve the manipulation and insider trading with heightened security and KYC procedures. Player well being, on the other hand, is something that sportsbooks are constantly trying to improve with responsible gambling tools and professionally trained support.

The response to the movement will be one to watch, especially considering the size of the NJ sports betting market, and how it was among the first states to legalize sports betting. If NJ bans microbetting entirely, it will most likely inspire other states to form similar bills. On the flip side, if the sportsbooks can argue their case and find an alternative, it could reinforce microbets in the eyes of the public, and see them stick around for a long time to come.