New Jersey Bill Would Ban Microbetting on Apps and Websites, Allow It at Physical Casinos

New Jersey lawmakers are advancing a bill that would ban microbetting on online platforms and mobile sportsbook apps while preserving the format for in-person bettors at Atlantic City casinos and licensed racetracks. The legislation cleared a key Assembly committee this week and could proceed to a full floor vote, potentially making New Jersey the first major regulated market to impose such a split restriction on the fast-growing format.

Microbetting allows users to wager on the outcome of individual events within a game rather than the game itself — a single pitch in baseball, one offensive play in football, or a solitary possession in basketball. The format has expanded rapidly on mobile sportsbook platforms because the speed and constant availability of markets keeps engagement high. Critics argue those same features make microbetting significantly more addictive than traditional sports wagering, particularly when accessible through a smartphone at any hour of the day.

What the Bill Would Do

The legislation specifically targets digital platforms. An amendment added during committee discussion would preserve microbetting at brick-and-mortar locations — Atlantic City casinos and licensed New Jersey racetracks — while prohibiting it through apps and websites. Operators who break the rules would face financial penalties of between several hundred and $1,000 per offense under the current draft language.

The bill has not yet been finalized, and the precise definition of what qualifies as microbetting versus standard live in-game wagering remains to be determined. That distinction will likely become the focal point of debate between legislators and the major sportsbook operators — including DraftKings, FanDuel, and BetMGM — that offer live markets in New Jersey and are expected to oppose restrictions on their products.

Supporters of the ban cite research suggesting that the rapid settlement cycles and low-information nature of microbets — where a bettor has virtually no analytical edge over the outcome of the next pitch — create conditions that more closely resemble slot machine play than skilled wagering. Several gambling addiction specialists testified in support of restrictions during committee discussions.

Why New Jersey Matters Here

New Jersey’s influence on national sports betting policy is difficult to overstate. The state’s successful 2018 Supreme Court challenge to PASPA opened the door for legal sports betting across the country, and its regulatory choices have since served as a reference point for other states drafting their own frameworks. A decision to restrict online microbetting in New Jersey could accelerate similar conversations in markets like Pennsylvania, Michigan, and New York.

For bettors who regularly use New Jersey sports betting apps, the timeline remains uncertain. The bill must still clear the full Assembly, pass the state Senate, and be signed by the governor. The legislative session in New Jersey runs through the summer, giving the proposal time to move — but also giving industry groups ample opportunity to reshape or slow it down before any final vote.

The proposal also comes alongside a second bill advancing in the legislature that would bar sportsbooks from offering promotional bonuses to players who sign up for responsible gambling tools — a measure that passed committee unanimously. Together, the two bills suggest New Jersey is entering a more cautious regulatory phase after years of aggressive market expansion.