Micro-betting or in-play wagering is a form of live betting. For example, you can bet on whether a play in football will result in a run or a pass. The bets focus on immediate short-term actions rather than the outcome of an event. You can bet on the next round or the next play and know whether you won or lost in seconds. This is different from traditional sports betting, where you place your wager, sit back, and hope for the best. Micro-betting is fueled by technology that didn’t exist a decade ago.

Now, Dan Hutchison, a New Jersey Assemblyman, has introduced a new bill that seeks to ban micro bets in New Jersey. He believes that the design of micro-betting encourages compulsive behavior and wants to make it illegal.

Sports betting is flourishing in New Jersey

New Jersey was the first US state to legalize online sports betting, and it currently has 14 legal online sportsbooks. When betting at a licensed NJ online casino, bettors can use an app on their mobile devices to play casino games and place sports bets.

New Jersey Governor Phil Murphy recently signed legislation to increase state taxes for online gambling and sports betting to 19.75% of gross revenue. The state relies on tax revenue from online gambling and online sports betting to fill budget deficits.

All micro-bets would be illegal

Assembly Bill 5971 aims to make all micro-bets illegal. These bets are quite different from conventional sports bets. Their fast pace raises addiction concerns. Another concern is that athletes may adjust their performance to influence the outcomes. The bill also aims to remove this temptation and thereby protect the credibility of athletic performances.

Organizations that deal with problem gambling are backing the bill. The Council on Compulsive Gambling of New Jersey (CCGNJ) says calls to its helpline have increased by 277% since the legalization of sports betting in the state. Mental health data shows that micro-betting has the potential to accelerate the trajectory towards addiction, particularly for those with pre-existing mental health problems.

Proposed penalties

The bill proposes that violators of the ban would be committing a disorderly person’s offense. Penalties for this offense would be between $500 and $1000 for one violation. This legal deterrent would help to ensure compliance by legal sportsbooks operating in New Jersey.

Hutchison clarifies that this legislation isn’t intended to undermine the broader framework of sports betting in the state. What he wants to do is to prevent entertainment from devolving into exploitation, where a constant cycle of instant wagers pressures sports bettors into making unwise financial decisions.

The future of micro-betting

Micro-betting has surged in popularity across American markets, driven in part by sports like football and baseball that are particularly well-suited to this fast-paced wagering format.

egulators have generally permitted micro-betting, but they also closely monitor responsible gambling. Some states have concerns about micro-betting. On the negative side, it could accelerate the path to addiction in vulnerable individuals. On the positive side, live betting can significantly boost user engagement. As a sports bettor, you can place dozens of bets during an event with available micro-markets, which means you just may be able to gift yourself with your winnings.

In mature betting markets, in-play betting flourishes. It does require the use of the latest technology, as operators must process transactions, update odds, etc. with minimal delay. Forward-looking sportsbooks that invest in the latest technologies can offer many micro-betting opportunities during a single event. This increases the overall sports betting handle, giving operators more revenue and opportunities to personalize the sports betting experience.