Earlier this year, we heard that reporter Jake Pearson planned to ask our editors at ProPublica for more than $20,000 so he could spend the NBA playoffs betting like a problem gambler.
We told him we wanted in on the action.
For 10 weeks, our documentary team at ProPublica filmed Jake as he dove ball-cap-first into DraftKings and FanDuel, the country’s largest online sportsbooks. Jake bet early, late and often, ramping up the amounts and frequency of his wagers, chasing his losses with even bigger bets. He wanted to flagrantly wave the red flags of a gambler descending into addiction. Would the apps serve up speed bumps as he careened into the red, or would they push him to keep betting?
Since 2018, the year the Supreme Court opened the door for states to legalize sports betting, the number of people staking money on games has exploded. It’s now legal in 39 states and Washington, D.C. The apps don’t just offer straight action on the outcome of a “Sunday Night Football” game — you can put money on myriad sports events and outcomes, including who will score the next point in a tense contest of Czech table tennis. Every month, millions do.
More than $600 billion has sloshed through the legal sportsbooks in wagers — and brought billions in state tax revenue — in the last eight years. But between the ever-present ads featuring celebrities from LeBron James and Charles Barkley to Kevin Hart and Kendall Jenner, cracks in the system have started to show.
About a quarter of active sportsbook account holders surveyed by the Siena Research Institute this year said that they’d lost enough on a bet that they’d have trouble meeting their financial obligations. Other studies and public health experts warn of rising cases of bankruptcy, addiction and self-harm.
DraftKings and FanDuel say that they don’t want to profit off bettors who can’t control themselves, and they provide a range of what the industry calls “responsible gaming” tools to help users stay in check.
Jake received pop-up notices, reminders and emails noting his time on the app and nudging him to “take a beat” after a loss. He opted into some of the tools DraftKings makes available. But he was struck by user design choices and promotions that encouraged him to keep betting, some of which he was served right after setting limits on his play.
In a statement, DraftKings told ProPublica that it trains its more than 5,000 employees on responsible gaming and has more than 50 full-time staff dedicated to its “responsible engagement” program. A FanDuel spokesperson wrote that the company’s program is “designed to identify potential risk early and empower customers with real-time information about their play.”
Even so, regulators and lawmakers from Colorado to Massachusetts have begun to question whether sportsbooks have sufficient protections in place. Those concerns have risen with the popularization of prediction markets, which are even less regulated than sports betting apps like DraftKings.
We were behind the camera back in April when Jake opened his DraftKings account to place his first bet, a $100 Hail Mary wager for the New York Knicks to win the chip. We had no idea what a ride it would be.
Watch our new documentary that follows Jake as he intentionally descends into problem gambling — and see how the apps react.
Have you used apps like DraftKings or FanDuel to place sports bets? ProPublica is looking for at least 250 people who use these apps to share their data with us. Your transaction history will help us better understand how the apps respond to user behavior. You can also reach Jake Pearson and the reporting team at 917-512-0276 or [email protected].
