Gaming Industry Faces Legal Challenges Over Gambling Regulations

New Jersey lawmakers held a public hearing regarding Assemblyman Dan Hutchinson's bill, A5971, which aims to prohibit micro betting in the state. Micro bets are defined as prop bets wagered live during a sporting event, concerning the outcome of the next play or action.

Hutchinson expressed concerns about the pervasive gambling advertisements in the Philadelphia media market, noting that over $37 million has been spent on ads by sportsbooks from January to September. He stated, 'This is a very, very serious problem.' The bill proposes fines for operators that accept or offer micro bets, with penalties ranging from $500 to $1,000 per offense.

Harry Levant, Director of Gambling Policy at the Public Health Advocacy Institute, backed the bill, warning that micro betting frequency can lead to a public health crisis. Jean Swain, a problem gambling prevention specialist, echoed that micro betting heightens risks, particularly for vulnerable groups.

Opponents of the bill, including Zachary Khan from the Sports Betting Alliance, claimed that micro bets help maintain sports integrity and detect unusual betting patterns. Khan argued that banning micro bets would drive consumers to illegal markets, diminishing the state's regulatory advantages.

The Sports Betting Alliance represents major players in the industry, including DraftKings and FanDuel, and emphasizes the economic benefits of regulated sports betting in New Jersey, supporting thousands of jobs and generating significant tax revenue.