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Hey, ProPublica reporter Jake Pearson here. I’m taking over the account to tell you about my new story. For months, I posed as a problem gambler on DraftKings to test the company's "responsible gaming" safeguards. Spoiler alert: They made me a VIP — and I lost $10K. Here's how it all went down. 🧵

2/ Why now? More people are betting on sports than ever. But as the industry soars close to $17B in revenue, calls to gambling helplines have also skyrocketed.

3/ As public scrutiny grows, DraftKings and the other big operators stress that their safeguards work. An exec told me if someone shows too many signs of problem gambling, they’ll proactively close the account — though she declined to say how many times DraftKings had done so.

4/ But over the next 10 weeks, I’d mimic the patterns of a problem gambler with the help of a panel of gambling experts and learn just how much DraftKings would encourage my recklessness — and just how little pushback I’d get as I spiraled downward.

propublica.orgI Deliberately Bet Like a Problem Gambler. DraftKings Made Me a VIP.Amid growing public health concerns, operators like DraftKings have touted “responsible gaming” tools and prompts. But as I went off the deep end, I found they were no match for the incentives and pro...

5/ With ProPublica bankrolling me, I opened my account in April. I waved my first red flag during a Knicks game by loss chasing, or attempting to recoup my continued losses by making more and bigger bets. Soon, I was already down ~$2K — most of it blown in one night.

6/ The next day, an email popped in my inbox: 'Welcome to the DraftKings VIP Showcase.' I couldn’t believe it. My night of loss chasing was being rewarded. Reading the fine print, I was floored: The more I spent on long-odds wagers, the faster I’d advance through the ranks.

7/ An expert explained that losers like me are the bettors that sports betting companies are most interested in. A small group accounts for a large portion of revenue. And what keeps losers loyal? VIP programs. The more you bet, the more you get: free bets/swag/fancy dinners.

8/ As the @nytimes.com reported, DraftKings uses machine learning and data scientists to entice losing customers with promos to keep them going — even if those are the customers at risk of becoming addicts. The company says it doesn’t unfairly target people.

nytimes.comHow DraftKings Uses A.I. to Target the Gamblers Likeliest to LoseData science helps determine who receives betting incentives, but the company has resisted using similar technology to protect gamblers at risk of addiction.

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9/ A month in, I was betting so much that DraftKings’ quick-tap deposit buttons had increased to $500, $750 and $950, making it even easier to mindlessly transfer money into my account. I was also getting pummeled with push alerts inviting me to bet more.

10/ By late May, I was waving all the red flags of a compulsive gambler and had gambled away thousands. Yet the only pushback I got from DraftKings was “responsible gaming” prompts that required me to opt in — prompts that were easily swept away.

when they make public statements they should be required to back them up with money. "We bet you $100 million dollars that we don't make money off of compulsive gamblers -- and if you can prove we do before an impartial panel we will give you that money."

11/ Finally, I decided to set in-app limits on how much I could deposit and how much time I could spend on the app. I then received the first of four promotional push alerts just half an hour later.

12/ When I told Lori Kalani, DraftKings’ responsible gaming chief, it felt like the pushes undermined my attempt to slow it down, she disagreed. “People use our tools all the time,” she said. “And they also appreciate being offered” promos other customers get.

Anything stronger than the dopamine zaps from BlueSky likes is too much for me. I’m lucky to know my limits. And still I waste time but I get good news and reporting like this.

What a graet read. Sadly I think the "how can we use this technology to scam the consumer" ethos is the default mode of our economy. Add in a product like gambling and woh boy. Given the wealth and power behind these bad actors, I don't know what it will take to regulate this crap out of existence.

"Once the rockets are up, who cares where they come down? That's not my department!" says Wernher von Braun -- Tom Lehrer, "Wernher von Braun" (1965), partially quoting W.H. Auden’s 1939 poem “September 1, 1939.”

1/2 He had to sell his 1% minority ownership stake in the NBA's Sacramento Kings due to strict league rules prohibiting team owners from having financial ties to gambling companies. *May be a point to note in checking other team owners who promote sports betting