Brian Schatz Proposes Federal Bill to Ban Micro Prop Bets

(AsiaGameHub) –   U.S. Senator Brian Schatz is drafting a federal bill that would prohibit micro prop bets and grant the Federal Trade Commission authority to take action against firms assisting illegal offshore sportsbooks.

Good to Know

• The legislation would ban wagers on individual, standalone moments during games.
• The FTC could pursue payment processors collaborating with unlawful offshore sportsbooks.
• Schatz presented the plan at a Senate Commerce subcommittee hearing focused on sports betting.

Schatz wants federal enforcement to target companies that help illegal sportsbooks transfer funds.

The Hawaii senator noted the FTC could go after payment processors that knowingly work with offshore operators. This approach won’t fix every gambling issue, he said, but it would give regulators a clearer path into a market often outside U.S. licensing systems.

“We think we, legislatively, have a pathway here. It doesn’t solve every problem, and it certainly doesn’t solve every problem as it relates to the challenges that individuals and society [are] facing with gambling,” said Schatz, a senior member of the Senate Commerce Committee.

“But if you empower the FTC to go after the payment processors, then they would have a perfect right to go and say, ‘You may not work with these offshore shops if they are not complying with federal law having to do with micro prop bets.’”

Micro prop betting would also face a direct ban under the proposal. These wagers focus on small in-game events—like a single pitch, possession, or player action—rather than final scores or broader game results.

Schatz said this structure raises both integrity and gambling harm concerns.

“Micro prop [bets are] insidious in that [they] can be manipulated by a player or anyone else,” said Schatz. “The more micro you get, the more insidious it is, from an integrity standpoint. But it also taps into the addictive, manic, algorithmically-driven problem that we’re dealing with. I think this particular problem is especially acute and needs to be dealt with immediately.”

The hearing occurred as lawmakers reviewed sports betting growth, prediction markets, offshore sportsbooks, and consumer risks. Recent NBA and MLB betting cases have also raised concerns about wagers tied to single-player actions and nonpublic information.