New Jersey’s digital gaming industry has been under siege by the legislature recently, with the latest measure aimed at banning microbetting in the Garden State.
Spontaneous Wagers
New Jersey Assemblyman Dan Hutchison recently introduced Bill A5971, which would ban microbetting from being offered at sportsbooks operating in the state. Microbetting has become popular, as it renders instant satisfaction, or dissatisfaction, depending on the result, from the wager being placed, which takes under a minute to determine whether or not the bet was a winner.
The bill currently on the table defines microbetting as “a proposition bet placed live during a sporting event that relates to the outcome of the next play or action.” Many bettors have become accustomed to betting on the next play or next pitch, which occurs only seconds after the wager has been placed.
“The pace of micro betting is designed to keep people gambling constantly, making one impulsive bet after another with little time to think,” Hutchison said in his press release. “This bill is a commonsense step to slow that cycle down and protect individuals from the financial and emotional harms that can come with excessive betting.”
The issue Hutchinson and others have with microbetting is that it can have an adverse effect on those most vulnerable to compulsive gambling. However, eliminating the option would also reduce revenue for mobile sports betting platforms and thus the state that derives taxes from it. Any sportsbook found to be offering these bets would be subject to a $500 to $1000 fine should the measure pass.
“This legislation isn’t about banning sports betting. It’s about setting boundaries to ensure it’s done responsibly,” Hutchison said in his release. “By banning micro bets, we would be taking a clear stand against predatory practices that push people toward irresponsible gambling habits.”
Executive Director Luis Del Orbe of the Council of Compulsive Gambling of New Jersey (CCGNJ) supports the legislation, stating, “The evidence underscores that micro betting can accelerate the path to problem gambling, especially among vulnerable populations such as youths and individuals with a history of compulsive gambling. We praise the sponsors for their insight and initiative in addressing this critical public health issue. By eliminating micro betting, this legislation would take an essential step toward protecting citizens from the harmful effects of reckless gambling practices.”
The CCGNJ also reports a 277% spike in problem gambling calls to its helpline since mobile betting launched in June 2018.
DraftKings Purchases Microbetting Operator
Microbetting has become a niche market for sportsbooks, and Boston-based DraftKings announced the completion of an acquisition, Simplebet, a microbetting technology provider, in December for a reported $195 million, which would allow the company to have timelier pricing on microbetting proposition wagers.
“Live betting represents an area for potential growth for online sports betting, and the proposed acquisition would allow DraftKings to leverage Simplebet’s proprietary technology to create an in-play wagering experience that moves at the speed of sports,” DraftKings Chief Product Officer Corey Gottlieb said in a press release.
The microbetting trend is akin to pulling a slot machine in that the results are nearly instantaneous. New Jersey happens to have iGaming, of which DraftKings is one of the state’s licensed platforms, but in many other states that strictly have mobile sports betting, the resemblance to iGaming is familiar.
