The U.S. Senator Brian Schatz is set to propose legislation aimed at banning micro prop bets in sporting events and granting the Federal Trade Commission the power to target companies that knowingly support illegal, offshore gambling.

During a Senate Commerce subcommittee session on sports wagering, Schatz highlighted the potential of this proposal as lawmakers and gambling experts voiced concerns about offshore operators and the micro prop betting landscape.

As per Schatz, the new legislation would empower the FTC to take action against payment processors that facilitate transactions for illegal offshore betting sites.

“We believe we have a legislative pathway here. While it won’t address every issue, it certainly helps with some of the societal challenges around gambling,” stated Schatz, a prominent member of the Senate Commerce Committee.

“By empowering the FTC to go after payment processors, they can legally challenge those dealing with offshore operations that fail to comply with federal regulations regarding micro prop bets.”

This proposed law would also prohibit micro prop bets in sports events.

Senate Hearing Investigates Betting Dangers

During the hearing, Schatz highlighted the risks associated with micro prop wagers, which hinge on specific moments or actions during sports competitions.

“Micro prop [bets are] deceptive and can be influenced by a player or outside parties,” Schatz commented. “The more specific the bet, the greater the risk to the integrity of the game. Furthermore, it contributes to the addictive, fast-paced issues we face with gambling. This particular matter is urgent and requires immediate attention.”