In the wake of a recent gambling scandal involving the NBA, lawmakers and sports leagues are intensifying their scrutiny of microbetting. Following multiple FBI arrests related to a gambling scheme connected to NBA games, several federal lawmakers have called for bans on prop bets. However, a more measured approach is emerging among some representatives. Major League Baseball is reportedly collaborating with other leagues to address the issue, and a New Jersey lawmaker has proposed a ban on microbets.
US Representative Paul Tonko of New York has reached out to professional league commissioners, advocating for support of his SAFE Bet Act, which would prohibit the use of artificial intelligence in creating microbets. Microbets refer to specific prop bets placed during a sporting event, such as whether a pitch will be a ball or a strike, or who will score on a team’s next possession.
Ohio Governor Mike DeWine disclosed that MLB Commissioner Rob Manfred is urging a ban on microbets in coordination with other leagues. DeWine stated that Manfred's office had confirmed consensus among all but one sports betting company. "These micro prop bets are just very dangerous," DeWine remarked. "They’re really a great threat to the integrity of sports. And they can occur in baseball, but they can also occur in other sports as well. And they do occur in other sports as well."
DeWine's appeal for a prohibition on microbets began this summer, following the suspension of Cleveland Guardians pitchers Luis Ortiz and Emmanuel Clase amid a gambling investigation. He noted he would await MLB's response before pursuing further state regulations. Last year, the Ohio Casino Control Commission prohibited college prop bets after NCAA President Charlie Baker advocated for such action.
In New Jersey, State Senator Paul Moriarty recently introduced bill S4794 to outlaw microbets, mirroring Assemblyman Dan Hutchison’s earlier bill AB5971. Moriarty’s proposal outlines fines for operators who facilitate microbets, defining them as “a proposition bet which is wagered live, while a sport or athletic event is ongoing and concerns the outcome of the next play or action occurring in the sport or athletic event.” Penalties for operators could range from $500 to $1,000 per offense.
Hutchinson clarified that he supports sports betting overall but seeks to curb "excessive and impulsive gambling" with this legislative effort.
Representative Tonko first introduced the SAFE Bet Act last year and reintroduced it this year alongside Senator Richard Blumenthal. The act includes a ban on AI utilization for gambling products, including microbets. Tonko recently sent letters to several major professional sports leagues, urging them to back the establishment of federal gambling safety standards. He criticized the leagues for prioritizing profits over integrity, stating, "Claims of prioritising integrity ring hollow when leagues have sold credibility to gambling operators, integrated betting content into broadcasts, normalised wagering for teenagers, glorified it in advertising, and then failed to prevent criminal conduct from taking hold within the sport." He presented a clear choice for the leagues: engage with Congress to implement essential standards or bear responsibility for future scandals that harm families and communities.
The letters were sent to the commissioners of major sports organizations, including MLB, MLS, NBA, NFL, NHL, NWSL, and WNBA. Following the gambling arrest cases, a House committee requested a briefing from NBA Commissioner Adam Silver, while a Senate committee asked for details concerning internal gambling investigations by November 10.
The SAFE Bet Act aims to set federal standards, which encompass prohibiting sportsbook advertising during live events, banning promotional programming that encourages gambling, limiting operators to five deposits within a 24-hour span, necessitating affordability checks for customers, restricting AI use for tracking players’ gambling patterns, outlawing bets on collegiate and amateur events, and requiring the surgeon general to report on public health issues tied to sports betting.
