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Peter Kafka covers media and technology, and the intersection that, in. Many of his stories can be found in the Kafka on Media newsletter, and he also hosts the Recode Media podcast.
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Remember when we decided that spending too much time on the phone was a bad thing? That immersing ourselves in iPhones can be unhealthy or even addictive?
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That was a few years ago. So guess this: now something we already know is potentially addictive, sports betting, available on the phone, accompanied by a media blitz promising a path to easy money. But people who worry about the combination seem to be few and far between. So what happens to the sports betting industry if someone, be it Apple or Google, who has a lot of control over what can be done with phones, decides there is a problem?
Because whether you agree with gambling or not, it seems obvious that making it available to anyone with a phone and a debit card, with few or no restrictions and lots of advertising encouraging them to place bets, will lead to problems. some people. This isn’t one of those stories about the unintended consequences of technology: it’s there, on the surface.
“It’s an epidemic in the making,” says Felicia Grondin, executive director of the Council on Compulsive Gambling New Jersey, where online sports betting has been legal since 2018. Since then, she said, it’s easy to understand the impact: before the heat of In 2018, about 3 percent of calls to the organization’s problem gambler helpline from people who say they have problems with sports betting. Now that number is around 17 percent.
New Jersey is spearheading gambling because it is the state directly responsible for the 2018 Supreme Court ruling that gives individual states the ability to legalize online sports betting. But the rush of the country has followed, spurred on the promise of easy tax money, or the threat that they will lose money to neighboring countries where online gambling is legal.
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Well-capitalized big companies, established gaming teams like MGM Resorts and relatively new ones like DraftKings and FanDuel, are coming. They want you to start sports betting right from your couch, car, or bar by placing bets on the NFL. game or Olympic Hockey or Rugby World Cup 2023 or anything else with a few taps. And they’re spending a lot of money to convince you: DraftKings spent $1 billion on sales and marketing last year alone and plans to spend even more in 2022. (Disclosure: Media has a business relationship with DraftKings.)
And obviously there is a market for this. In the lead to legalization, there is a debate whether sportsbooks will introduce themselves to those who have illegal betting on sports, or will attract new people occasionally. We do not know the answer yet, but we know that there is a lot of money: In the first six weeks that legal online sports betting is available in New York, residents gambling $ 2.5 billion, including almost $ 500 million in. Sports Betting. superbowl. This week’s March Madness college basketball tournament should increase that number again.
I have been following the rise of legal online sports betting for some time – it is a very media story because media companies, which used to hide behind sports betting, are now eager to make money from programs and broadcasts. And the arrival of sports betting app coincides with the movement to reassess our relationship with technology in general and phones in particular, which gained momentum after the 2016 election.
In 2018, for example, former Apple executive Tony Fadell, who helped create the iPhone, called on phone and app makers to promote “a healthy and moderate digital life… At the same time, activists like former Google employee Tristan Harris promoted the idea “time well spent” on phones and devices, criticizing app makers like Google and Facebook for being dopamine boosters. The New York Times suggests you should make your phone less appealing by turning the screen to gray.
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So periodically when I meet with game executives and investors who are salivating at the chance to turn sports betting from a semi-underground hobby into a mainstream activity, I ask them: What would happen if Apple or Google decided that sports gambling , where every advertisement is accompanied Micro Machine-speed voiceover at the end tells you to get help if you have a problem with gambling – is it something you don’t want to happen on your device?
Or what if they are okay with sports betting but want to make it a little less hassle and require more signups and approval before placing bets? Or if they just limit the number of betting notifications the app can send? (FanDuel, for example, sends prompts every day, and sometimes it works: An hour before the Super Bowl, a pop-up appeared on my iPhone telling me that FanDuel has increased the odds of betting on whether the first game will succeed, and urged me to BET NOW ➡️ I did, and won, and then made two more bets while I was there).
The response from the game people has been consistent: they look at me like idiots and shrug.
But I don’t think it’s a totally stupid question. Apple, in particular, has been quite clear about the fact that the Apple App Store is the Apple App Store, and is willing to go to court so that it is the way; Just ask the makers of Fortnite, Epic Games. Apple’s App Store edicts range from the outrageous (from the beginning, Apple told developers to stop making fart apps for the iPhone because they’ve had enough) to the righteous (Steve Jobs didn’t let porn apps into the App. Store, and the company has followed his insistence after death, and everything else.
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Apple has also made an emphasis on advocacy for responsible use of the phone; Shortly after Fadell’s 2018 trial, the company released a nutrition label similar to the app, which should tell you what content you will find in the app, if it will ask for money, and other good things. -know things that many users probably don’t know.
So I also asked Apple and Google, who have rules about how gambling apps are supposed to work, but the rules are usually “this thing has to be licensed and not a scam.” I also received negative responses from them.
To be clear: I don’t necessarily think Apple or Google should stop me from betting on sports. And I don’t think sports betting is definitely worse than many other vices or risky behavior that I have on my phone now. Seamless makes it very easy for me to order more comfort food than I should; Drizzly let me buy whiskey without my pants on. I bought dogecoin through Robinhood, minutes before Elon Musk appeared on SNL, and now I’m down 78 percent. And if I lived in California or Michigan, I would definitely get my weed gummies delivered to my house via Eaze. Not to mention the time I spend on things that annoy me but don’t give me any real pleasure, like doomscrolling and shitposting on Twitter.
Felicia Grondin agrees with me, up to a point. But he believes that people with sports betting problems are harder to find than, he says, people struggling with substances. “It’s a hidden addiction,” he said. “You don’t smell people’s breath; You don’t see that behavior until it’s too late.”
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It’s certainly easy enough to get into trouble with this thing: ask Calvin Ridley, the Atlanta Falcons player who bet $1,500 on three NFL games last fall and has now been banned for at least a year due to NFL rules. The league bans players from betting on league matches Ridley’s bet will reportedly end up costing him more than $11 million in lost wages.
Again: I wish I could bet $10 on an NFL game from my bedroom. And when I think about my personal problems with my phone, sports betting apps aren’t on the list (at the top of the list right now: everyone in my son’s 6th grade uses Discord to gossip about games). prediction results). But it seems obvious that somebody, eventually, maybe a federal or state regulator, maybe a phone platform, is going to want to step back and ask themselves, “What have we done and how can we fix it?” I’ll bet on that.
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