U.S. Sen. Brian Schatz is preparing federal legislation to ban micro prop bets. The bill would also target companies that help process payments for illegal offshore sportsbooks.
The Hawaii Democrat raised the issue during a Senate Commerce subcommittee hearing on sports betting. His proposal would target wagers on individual moments within games, rather than broader bets on match winners or final scores.
Micro bets face integrity concerns
Micro prop bets allow users to wager on small in-game events, such as a single pitch, play, shot or possession. Schatz has warned that these markets are easier to manipulate because one person can influence a specific moment.
The concern is about sports integrity. A player, official or other insider may not be able to control a full game result, but could affect a smaller event that appears inside a betting market. Micro betting also raises responsible gambling concerns. The fast pace of these wagers can keep users betting repeatedly during live games, making the product more intense than traditional pre-match bets.
Offshore payments also targeted
Schatz’s planned bill would also give the Federal Trade Commission more power over companies that knowingly support illegal offshore gambling. That includes businesses that help offshore sportsbooks process payments from U.S. customers.
Offshore gambling sites remain a major concern for regulators and licensed operators. They often operate without U.S. licences, local taxes, age checks or state responsible gambling rules.
The payment focus would add to federal efforts against illegal internet gambling. If passed, the bill would give authorities another tool to act against businesses that help offshore betting platforms reach U.S. users.
Sports leagues watch prop bet risks
Micro prop bets have drawn more attention after recent integrity cases in U.S. sports. Leagues, sportsbooks and regulators have already reviewed limits on certain player-specific markets.
Some leagues want stricter rules on bets tied to one athlete’s actions. The NCAA has also supported restrictions on college player prop bets, arguing that those markets can increase harassment and pressure on athletes.
Federal action would affect state markets
Sports betting is mainly regulated at state level, but Schatz’s proposal would create a federal limit on one category of wagering. That would affect licensed sportsbooks in states where micro prop bets are currently allowed.
The bill would also separate micro prop betting from standard sports wagers. Broader markets such as moneyline, spread and totals betting would not be the main target of the proposal.
