When
last month to pay states $17.1 billion in penalties and make major changes to address claims that its platforms are addictive, attorney Jennifer Hoekstra already had her eyes set on the next frontier in the consumer backlash to Big Tech — sports betting.
uncertain
eyes → pay → Tech
Hoekstra, a Florida attorney whose firm was involved in an earlier win in court against Meta, recently filed a series of 15 lawsuits against the two biggest sports gambling apps in the country, FanDuel and DraftKings.
asserted
firm → involve → country
The cases follow a similar legal theory: that gambling apps were designed to addict.
asserted
apps → follow → theory
"I represent individuals who have essentially lost their houses and their spouses and their kids over this," Hoekstra told CBS News.
asserted
Hoekstra → represent → News
At a time when online sports gambling has exploded in popularity — with the amount wagered reaching $167 billion last year, according to the American Gaming Association — there are mounting concerns about the financial toll of all that betting.
uncertain
amount → explode → betting
One UCLA study published earlier this year found that in states that legalized sports gambling online, bankruptcies and credit card delinquencies increased about 25%.
asserted
bankruptcies → publish → gambling
A survey by the National Council on Problem Gambling found 8% of American adults, almost 20 million people, reported experiencing at least one indicator of problematic gambling behavior "many times" in the past year.
asserted
% → find → year
Gaming companies are vigorously fighting the cases, and dispute the notion that they are fueling addictive behavior.
asserted
they → fight → behavior
FanDuel, the largest online platform, told CBS News that "any claim that we don't aggressively take actions to monitor and curb problem behavior is completely false."
uncertain
we → tell → behavior
FanDuel, which has about 18 million customers, said it invested $158 million on responsible gaming and removed 5,700 people from the platform due to their gambling behavior last year.
asserted
it → have → behavior
A CBS News investigation has found that gaming companies are pushing hard to keep bettors engaged — even in cases where gambling losses are mounting.
asserted
losses → find → cases
"It's less about cutting them off than slowing them down," a former FanDuel employee told CBS News, speaking under the condition that he not be identified because he did not want to jeopardize his current job.
asserted
he → cut → job
The gambling company insider said some of the people he worked with at the company looked away when customers might be betting too much.
uncertain
customers → say → much
"I had conversations with people where they would say, 'Well, we know what we should do, but … we don't want to slow them down from placing a bet."
asserted
we → have → bet
VIP perks help keep customers betting
asserted
customers → keep → ?
Sports gaming apps deploy both low- and high-tech tactics to keep customers betting.
asserted
apps → deploy → customers
Much as Las Vegas casinos plied high rollers with gourmet meals and lavish entertainment, sports gaming apps are now rewarding VIP bettors with luxury suite access, autographed jerseys and unique fan experiences.
asserted
apps → ply → access
Esteban Ruiz-Haynes had never been to a pro hockey game until he started wagering on sports apps.
asserted
he → start → apps
Before long, Ruiz-Haynes was sitting 20 feet from scoring champ Alex Ovechkin at Washington Capitals games and walking the sidelines at the Baltimore Ravens' stadium.
asserted
Haynes → sit → stadium
A pest control salesman from the middle of Virginia, Ruiz-Haynes said he soon became a VIP member with his own FanDuel manager texting with him about upcoming sporting events to attend.
asserted
manager → say → events
The VIP manager even messages him on his birthday.
asserted
manager → message → birthday
"Just another friend," Ruiz-Haynes said.
asserted
Haynes → say → ?
Ruiz-Haynes has also amassed a stash of FanDuel gifts — like a signed helmet from a Washington Commanders player and signed jersey from an NFL Pro-Bowler.
asserted
Haynes → amass → Bowler
How much does Ruiz-Haynes bet with FanDuel?
asserted
Haynes → bet → FanDuel
He said anywhere from $80,000 to $120,000 a year, which is about the same as what he earns at work making door-to-door sales.
asserted
he → say → sales
He says there are times he will wager his weekly paycheck on a single game, if it looks promising.
asserted
it → say → game
If he wins, he says it's like he got paid double.
asserted
he → win → ?
And if he loses, "I'm eating ramen noodles for the rest of the week."
asserted
I → lose → week
Louis Ruggiero, a podcaster and a recovering gambling addict who lives in New York City, says that after he lost $100,000 on FanDuel in three months, they offered to make him a VIP bettor.
asserted
him → recover → months
Two other gambling companies offered him VIP status as well.
asserted
companies → offer → status
"From that moment forward, I wasn't just a customer, I was a target," Ruggiero recently wrote.
asserted
Ruggiero → write → moment
"The incentives got bigger.
asserted
incentives → get → ?
The outreach got more personal.
asserted
outreach → get → ?
The losses got deeper," he said.
asserted
he → get → ?
"Let's call it what it is: This is not 'VIP treatment.'
asserted
This → let → it
This is predatory retention disguised as hospitality.
asserted
This → disguise → hospitality
At the same time companies lavish attention on prolific gamblers, they are also running sophisticated data operations.
asserted
they → lavish → operations
The former FanDuel employee told CBS News the company was easily able to keep tabs on its customers' betting behavior — detecting if a gambler was betting within a normal range, or if their activity is fading.
asserted
activity → tell → range
"Their data collection is among the best I've seen at any company I've worked at," the insider said.
asserted
insider → see → company
And if bettors took a break, he said, they would often target them with push notifications to try to get them gambling again.
Hoekstra, the lawyer, alleges in the lawsuits she filed that those notifications and bonus alerts eventually create a persistent ambient presence in a gambler's life, inviting reengagement at moments of boredom, stress, financial anxiety or emotional vulnerability.
"It's the dopamine hit," she said.
asserted
she → take → boredom
…and 32 more, not listed.
The Aporia
