States Target Microbetting But Can They Afford to Ban It?

Among the trends in the US legal betting landscape, one of the narratives that keeps on returning is the ethics of microbetting. Lawmakers in Pennsylvania, Massachusetts, Ohio, Louisiana, and most notably New Jersey are considering putting an end to these controversial betting products, but a rare twist emerged in the storyline last week. Louisiana had prepared a proposition bill to investigate microbets, but it was withdrawn after a significant counter argument was presented. Microbets are a massive industry right now, and any ban could incur heavy losses on state revenue that comes from gambling tax.

It gives the entire case against microbets a very different angle. These are definitely very influential products that make up a significant portion of the mobile betting handle across the US, and banning them outright could have deep cutting impacts for sportsbooks and operators alike. From a responsible gambling approach, sure the states want to protect the interests of the general public.

But by taking one of the most popular betting products off the shelves, and clearing their conscience, they could also alienate the public and send them to offshore betting sites or prediction markets – neither of which are in the state nor the responsible gambling organizations’ interests.

Bill to Ban Microbets and Props in Louisiana

Proposal SB354 was filed at the end of February by Senator Katrina Jackson-Andrews, which would have eliminated microbetting and potentially also props bets. It simply described the removal of sports related proposition betting, prohibiting micro-bets and proposition bets. This is very dangerous territory, from a legal but also technical point of view. Because micro-bets can be described as props bets, but props bets is more of an umbrella term, relating to any kind of wager that is not determined by the outcome of a game.

You can get props bets relating to player performance, halves/quarters or other partial game derivatives, and also props that are focused on team stats. Microbets, by contrast, are live betting props that relate to events in the immediate future – but they can also relate to other nuanced player props or game stats. This outright ban on props bets (including microbets), was quickly withdrawn by Senator Jackson-Andrews herself after the potential financial consequences were discussed.

Props Revenue in Louisiana

Louisiana, where the proposal was introduced, generated around $90 million in sports betting taxes across 2025, of which analysts estimated $40 million came from microbets and proposition wagers. That is an estimated 44.44% of the betting handle, a significant proportion that cannot be ignored.

That is not to say banned microbets would see a 44% hit to the betting handle, as there will be alternatives for sports bettors to turn to, but some of those alternatives can fall in the iGaming territory outside the authority of the Louisiana authorities. Simply put, some of those alternatives would result in a negative hit on the state’s betting revenue.

Impacts of Blocking Microbetting

Protecting the competitiveness of the regulated market is the first priority for lawmakers. Not just because it is an important source of revenue, but also because the state authorities can only curb the addiction and introduce responsible gambling measures in the market they oversee. If sports fans who use legal sportsbooks decide to use alternatives such as illegal betting sites, unregulated gray market sites, or alternative betting products such as social sportsbooks, fantasy apps and prediction markets, the state has less control over their activity.

Social sportsbooks, DFS, peer to peer trading apps and prediction markets cannot really supply microbets because of their operational mechanics. With social sportsbooks, the sports coverage is often a lot more limited than traditional sportsbooks, and while they may provide live betting, the options generally don’t include classic microbets. DFS apps can’t really touch live bets because of how their design, and P2P or prediction markets require liquidity – thus live betting is extremely difficult. While not impossible, if you consider how microbets work, prediction markets are just not well equipped to handle these.

So the viable alternative here becomes the option that the state authorities are most afraid of. Turning to illegal black market sites, or gray betting platforms that are regulated outside the US but not recognized by any US gambling authority.

US Betting Trends and Preferences

And microbetting is one of the biggest trends in the US sports betting industry. Player bets have long been a popular choice for US sports fans, whether they are building DFS lineups or creating same game parlays with multiple player bets. The mobile betting experience is also becoming far more popular, with US sports fans requiring quick betting on the go, detailed statistical analysis, mobile friendly payments, and functions such as live betting and cashout all available through mobile devices.

There is a massive overlap with fantasy sports here, which were really the only legal precursor to traditional sports betting for many Americans. Fantasy which revolved around betting on players. But conventional sportsbooks have expanded the possibilities here, with a greater share of proposition bets, and the opportunities to place live player props.

So it was only natural that microbetting gradually emerged in 2021. Key features of this betting product is that they provide bettors with quick and very detailed bets, which require near instant decision making and can have big payouts. There are also far more possibilities. For NFL bettors, instead of having to wait the full 3-3.5 hours for the game outcome, these bets on the next drives, result of the next play, and next team to score can all settle in minutes. So you can place new bets every few minutes, and instead of having a few straight bets or a single game parlay riding on an NFL game, you can bet continuously throughout the game, winning and losing wagers right up til the end of the game.

Responsible Gambling and Insider Trading Fears

The danger in that is the endless loop and reckless engagement that microbetting creates. For the general public, it reinforces the experience of betting as a fast paced game where you are forced to make quick decisions and take risks to capitalize on those fast paying markets. Because sports betting is seen as a more skilled based activity than, say, playing slots, most sports bettors wouldn’t draw comparisons between the two. Your sports betting expertise can give you the edge here, as you may spot indicators such as a player’s waning confidence levels or fatigue coming into play (or any opposing positive effects).

But it doesn’t take away the fact that you are still guessing and taking a gamble, just as you would with a pregame wager. Only the pregame wagers afford you time, time which can be spent weighing up the pros and cons and making a smarter betting decision. So there are addictive and compulsive betting habits that microbetting can induce in a sports fan. And then there is the vulnerability of these wagers to insider betting.

There were numerous betting scandals in recent NBA and MLB history, with players and associated people making very specific player props and microbetting wagers. In MLB, the indicted Cleveland Guardians pitchers were found to be rigging microbets, and Major League Baseball was quick to react. Using its sportsbook partners, the MLB managed to influence a betting limit on microbets. Also, they made it illegal to put microbets into parlays, limiting the flexibility sports fans get with these types of wagers. Due to its level of detail, these bets are prone to fixing, especially in the MLB case, with microbets on the speed of the pitch and types of balls thrown.

Status of Microbetting in Other States

New Jersey has taken on the most aggressive stance against microbets. The legislation is advancing and if NJ lawmakers can see it through, the state would make it illegal to bet on specific moments within play or on instant wagers. Pennsylvania and Massachusetts have also put pressure on microbets, though they have not yet actively pushed for outright bans of these wagers. And then there are players like Ohio, which have banned college props bets and expressed concerns about microbetting. But they have yet to come forward and propose bills.

Right now, New Jersey is the sole driver in the plight against microbets. It is also one of the most significant betting states in the US, and if New Jersey bans microbets, it would send out a broad signal. No state wants to cut its competitive edge against the black market, and some commentators have suggested that up to 50% of New Jersey’s betting handle ($12 billion in 2025 – $1 billion per month) is powered by microbetting. New Jersey has 14 licensed sportsbooks and one of the biggest sports betting markets in the US, so it will no doubt have plans to leverage the loss of microbets if this legislation gets written into law.  But it will be one to watch, and as Louisiana pulled out of a similar movement, the pressure will come on NJ to push harder or delay the movement and reconsider its potentially destructive side effects.