New Jersey Legislators Target “Micro Bets” with Senate Bill S4794

Defining the Ban

The bill specifically targets wagers that are settled instantly based on the next immediate event in a game. The text defines a “micro bet” as a proposition bet placed live during an athletic event that concerns “the outcome of the next play or action.” A classic example provided is betting on whether the very next pitch in a baseball game will be a strike or a ball.

This distinguishes micro bets from standard “proposition bets” (prop bets), which might cover broader outcomes like a player’s total points for the entire game. While standard prop bets remain legal under this proposal, the hyper-fast, play-by-play wagering would be eliminated.

Rationale: Integrity and Addiction

The legislative findings attached to S4794 cite two primary drivers for the ban: the integrity of the competition and the risk of problem gambling.

1. Fixing the Game Micro betting is viewed as uniquely vulnerable to manipulation. Because these wagers focus on isolated incidents—like a single missed throw or a specific penalty—they are easier for a compromised athlete to “fix” without altering the final score of the game. The bill’s introduction follows high-profile scandals in professional sports.

• NBA: Former player Jontay Porter received a lifetime ban after admitting to faking injuries and manipulating his performance to ensure that bettors wagering on his “under” stats would win.

• MLB: League investigators probed suspicious betting patterns on “ultra-micro” outcomes, such as the result of the first pitch of an inning. Commissioner Rob Manfred has acknowledged that any player influence on specific plays threatens the sport’s integrity.

2. The Speed of Loss Legislators argue that the rapid cycle of placing and settling micro bets bypasses a bettor’s ability to think critically. The immediate gratification (or failure) loop can lead to “chasing losses” at a dangerous pace. The bill notes that the Council on Compulsive Gambling of New Jersey has reported a 277% increase in helpline calls since sports betting was legalized. The speed of micro betting is seen as an accelerant for this trend.

Penalties for Violations

If passed, S4794 would make offering or accepting a micro bet a disorderly persons offense. The proposed penalties are:

• A fine of $500 to $1,000 per violation.

• Crucially, the bill stipulates that each individual wager counts as a separate offense.

This structure means that a sportsbook accepting thousands of micro bets during a single football game could face millions of dollars in cumulative fines, creating a powerful financial deterrent against ignoring the ban.

The War on Prop Bets

New Jersey’s move is part of a national recalibration regarding prop bets. Other states are also tightening restrictions, particularly concerning collegiate athletes.

• Ohio banned all player-specific prop bets on NCAA events in early 2024 to protect student-athletes from harassment.

• The NCAA has called for a nationwide elimination of collegiate prop bets, citing incidents where players like UNC’s Armando Bacot received hundreds of angry messages from bettors who lost money on his rebound stats.

• MLB recently implemented voluntary restrictions on pitch-by-pitch betting, limiting wagers to small amounts and removing them from “parlay” combinations.

While regulated markets have successfully detected fraud, such as the systems that caught Jontay Porter, New Jersey lawmakers appear decided that the specific risks posed by instant, play-by-play micro betting outweigh the economic benefits of keeping them legal.