New Jersey microbetting under scrutiny as revenue climbs, risks mount

New Jersey lawmakers are paying attention. A pending bill, A3258, would ban microbetting, the rapid, in-game wagers on individual plays, such as a pitch or possession.

“I have seen the horrors of gambling,” said Assemblyman Dan Hutchison, (D-4th District), a sponsor. A bankruptcy attorney, he says he’s especially familiar with financial devastation linked to the habit. “Once it gets you, it gets you and you are going to live with it for the rest of your life.”

Lawmakers, though, have a broad dilemma. They must weigh gambling’s economic benefits as they confront a structural budget gap in the proposed $60.7 billion annual spending plan — and work alongside a newly elected governor, Democrat Mikie Sherrill, who says she won’t allow hundreds of millions of dollars in pet projects that legislators typically add to the state budget hours before the July 1 deadline.

New Jersey depends on legal gambling for billions of dollars in annual revenue from casinos, sports betting and internet transactions. The financial stakes are growing: More than $126 million was wagered on the Super Bowl this year, according to the Division of Gaming Enforcement. Operator revenues rose to $38.7 million, reflecting a higher “hold” percentage compared to the previous year.

In 2025, gross gambling revenue in New Jersey hit $6.98 billion, a record, from casinos, racetracks and their partners. The total, driven by sports and internet bets, marked an almost 11% increase from 2024.

The Council on Compulsive Gambling of New Jersey logged a 277% increase in helpline calls since sports betting was legalized in New Jersey in 2018, according to the bill’s text.

“Because of the rapid speed of many sporting events, and therefore the speed at which bets can be placed and settled, microbets provide a method for fans to stay engaged in every play,” according to the bill.  “Consequently, betters have less time to research and consider the details of their wagers before placing them, and bettor losses can accumulate quickly.

Richard Daynard, president of the Public Health Advocacy Institute at Northeastern University, says the rapid rise of mobile betting and targeted advertising is exposing a new generation to serious risks. A veteran of legal efforts against the tobacco industry, he said he sees parallels in sports betting’s evolution, particularly with youth as a target. Online operators like FanDuel and DraftKings, he said, are “making billions, and it’s all coming out of the losses of real human beings.”

“Gambling addiction is in the American Psychiatric Association ‘Diagnostic and Statistical Manual’ in the same section as cocaine and nicotine,” Daynard said. “Fifty percent of people who are addicted to gambling contemplate suicide. Twenty percent attempt it.”

At least 28 states as of April 1 were considering betting restrictions, according to IGamingToday.com.

The gambling industry, though, strongly disagrees with the narrative that legal betting is harmful. In a statement, Joe Maloney, president of the Sports Betting Alliance, said regulated operators are investing heavily in responsible gambling efforts.

“The legal sports betting industry is committed to initiatives that drive and support responsible gaming, which are not only good for our communities, they are good for building a sustainable industry,” Maloney said. “Across the country, regulated operators invest tens of millions of dollars annually in responsible gaming tools and employ hundreds of dedicated responsible gaming professionals.” Maloney said.

The big threat, he said, is the betting platforms that are out of regulators’ reach.

“New Jerseyans are being aggressively targeted by illegal, offshore online casino websites that contain no safeguards and prey on addiction,” Maloney said. “Billions of dollars are wagered annually on these illegal sites, which pay no state taxes, offer no binding self-exclusion, and answer to no regulator. The legal sports betting industry will continue our work to ensure that New Jerseyans will engage in an accountable, regulated system, rather than the shadows of offshore websites that ignore New Jersey law.”

Hutchinson, the lawmaker, wants to make offering or accepting microbets a disorderly persons offense, with financial penalties per violation. The goal is not to eliminate sports betting, he said, but to put guardrails in place.

“The assistance you can give that is the best is the preventive,” he said.