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Addicted To Losing: How Casino-Like Apps Have Drained People of Millions (nbcnews.com) 197

NBC News spoke to 21 people who said they were hooked on casino-style apps and had spent significant sums of money. The industry is almost entirely unregulated. From a report: Shellz, 37, a nurse from Houston, spends at least two hours a day with her husband playing a casino-style smartphone game called Jackpot Magic. The app offers a variety of typical casino games to play, including their favorite, called Reel Rivals, a game in which players accrue points by playing a virtual slot machine. As in a real casino, players exchange money for coins to bet. Unlike in a real casino, there is no way to win money back or earn a payout on coins. But that has not stopped Shellz and her husband from spending about $150,000 in the game in just two years. She asked to use her in-game username so her family does not find out how much money they have spent on the game. "We lie in bed next to each other, we have two tablets, two phones and a computer and all these apps spinning Reel Rivals at the same time," she said. "We normalize it with each other." Jackpot Magic is an app made by Big Fish Games of Seattle, one of the leaders in an industry of "free-to-play" social games into which some people have plowed thousands of dollars. Big Fish Games also operates a similar app, Big Fish Casino. Both are labeled as video games, which allows the company and others like it to skirt the tightly regulated U.S. gambling market. But unlike the gambling market, apps like Jackpot Magic and Big Fish Casino are under little oversight to determine whether they are fair or whether their business practices are predatory.

NBC News spoke to 21 people, including Shellz and her husband, who said they were hooked on the casino-style games and had spent significant sums of money. They described feelings of helplessness and wanting to quit but found themselves addicted to the games and tempted by the company's aggressive marketing tactics. Most of the 21 players wished to remain anonymous, as they were ashamed of their addictions and did not want their loved ones to find out about their behavior. A 42-year-old Pennsylvania woman said she felt saddened that she spent $40,000 on Big Fish Casino while working as an addiction counselor. "The whole time I was working as an addiction counselor, I was addicted to gambling and with no hope of winning any money back," she said. Big Fish Games did not make anyone available for an interview, nor did the company respond to detailed questions. The company has said in previous court filings that only a fraction of the game's players actually spend money. In a response to NBC News' inquiries, the company issued a statement saying its games are not gambling and should not be regulated as such.

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Addicted To Losing: How Casino-Like Apps Have Drained People of Millions

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  • Fortnite (Score:5, Funny)

    by darkain ( 749283 ) on Tuesday September 15, 2020 @12:08PM (#60507914) Homepage

    Is Fortnite on this list?

  • Again? (Score:3, Funny)

    by nospam007 ( 722110 ) * on Tuesday September 15, 2020 @12:13PM (#60507932)

    Next you'll tell us that half of us have an IQ of under 100?

    • by gweihir ( 88907 )

      Addiction is not related to IQ. A high one offers no protection.

      • Way more than half of us are a psychological mess. Luckily nearly all of us have coping mechanisms. Unluckily(heh!) for gamblers their coping mechanism is very expensive.

      • Re:Again? (Score:5, Interesting)

        by ShanghaiBill ( 739463 ) on Tuesday September 15, 2020 @01:21PM (#60508264)

        Addiction is not related to IQ. A high one offers no protection.

        At least with nicotine addiction, you are wrong.

        Link between cigarette smoking and IQ [memory-key.com]

        Stupid people are more likely to be smokers.

        • Re: (Score:3, Insightful)

          by Anonymous Coward

          Your linked article suggests a link between IQ and engaging in potentially addictive behavior, which is distinctly different from susceptibility to addiction. Being smart might help you avoid addictive things, but it won't protect you from actually becoming addicted once you're exposed to them.

          • I'm not sure the study being cited really teases that out. Not described in the article but included in the study ("Cognitive test scores in male adolescent cigarette smokers compared to nonsmokers: a populationbased study", Mark Weiser, et al. Addiction 2010 Feb 17;105(2):358-63. Epub 2009 Nov 17) were people who used to smoke and no longer do. Their IQ was closer to non-smokers than it was to active smokers.

            So, it would suggest that either IQ not only protects you from smoking, but does actually also

  • Most of the American population has a severe addiction to their gadgets. Severe. This is just one way people ruin their lives with these things. The most common way is people wasting their lives just staring at them accomplishing absolutely nothing.
    • True. But losing $150K in 2 years (instead of just websurfing your career away) would certainly add to the sting.
    • it's a gambling addiction. This has been well and properly studied. All the gadget did was make it so they could lie in bed together doing it. But it's an addiction, they'd be doing it on PCs if they didn't have smart phones.

      You shouldn't dismiss this just because a smartphone is involved.
      • by DogDude ( 805747 )
        People staring at phones all day is also an addiction. "Addiction is a brain disorder characterized by compulsive engagement in rewarding stimuli despite adverse consequences."
    • The most common way is people wasting their lives just staring at them accomplishing absolutely nothing.

      Most of these people would have accomplished nothing even without any gadgets.

      Question: Has productivity declined since smartphones were introduced?

      Answer: No. Productivity has gone up.

      • by DogDude ( 805747 )
        That's an interesting question. I'd love to see some research on this.
        • I'd love to see some research on this.

          There are tonnes of data available.

          Here is a visual chart [ourworldindata.org].

          Since the introduction of the first smartphones in 2007, productivity has increased everywhere and has increased at about the same rate as in the pre-smartphone era.

          Except in Portugal. The Portuguese need to get off their phones and get back to work.

          • by DogDude ( 805747 )
            The rate of productivity in the US clearly started slowing in 2010. That looks pretty suspicious to me.
            • The rate of productivity in the US clearly started slowing in 2010. That looks pretty suspicious to me.

              You are cherry-picking. Smartphones were a worldwide phenomenon. Productivity continued to increase everywhere*. In some countries, the slope increased slightly, in others it decreased slightly. But mostly the upward slope stayed about the same.

              Picking one datapoint out of the crowd and saying "Ah-Ha! Gotcha!" is not meaningful. The rate of increase in American productivity did indeed decrease. Most likely that was for reasons unrelated to smartphones. For instance, 2010 was when Obama's big stimulu

              • by DogDude ( 805747 )
                You are cherry-picking. Smartphones were a worldwide phenomenon.

                Cultures differ from country to country.
                • by ShanghaiBill ( 739463 ) on Tuesday September 15, 2020 @04:23PM (#60508900)

                  Cultures differ from country to country.

                  They do indeed. But perhaps not in the way you think.

                  When I ride BART to SF, half the passengers will have their noses in their cellphones.

                  When I use public transit in Shanghai, Tokyo, or Manila, it is over 90%.

                  If you think Americans are more addicted to their smartphones than the rest of the world, you are misinformed.

    • In a lot of ways it's similar to complaints that people just zoned out and watched TV in the 80s or just listened to the radio all the time in the 40s. Addiction to gadgets is not, in and of itself, particularly new or worrying. Having the gadget with you wherever you go and it constantly begging for your attention... That part is new and causing some new problems.

      Also, don't be so sure that if you took the gadgets away these people would accomplish anything. People are still accomplishing things despit

  • Historically, the second has always gone down the drains pretty fast, so it is decidedly a bad idea. Freedom does very much include the possibility to hurt yourself.

    I do get that addiction is harsh, but making the while world save for people with the tendency is not possible and trying to does far worse damage. Better to offer support and treatment to those affected.

    • to protect vulnerable people. Attacks on vulnerable people affect you too. These folks will go into debt, they'll spend less on useful things, including their children, resulting in worse outcomes for society as a whole. You are not an island.

      The real world is more complex. Yes, you can't make the whole world safe, but you can make it safer. Loot boxes and gambling mechanics in video games should be regulated the same way Las Vegas is regulated. Probably more so. Las Vegas has an incentive to control ga
    • by jythie ( 914043 )
      Luckily there are a wide range of options in between.
  • by Fly Swatter ( 30498 ) on Tuesday September 15, 2020 @12:15PM (#60507948) Homepage
    There should be a hard limit on in-app purchases within a yearly period. I am sure Apple took their 30 percent of the $150,000.

    On another slant, I know addiction is a thing - but to spend that much, shouldn't some sort of alert be triggered either by Apple/Google/Their Bank/Credit Card? This tells me those addicts had that money to lose, I guess that is just too bad.
    • by smooth wombat ( 796938 ) on Tuesday September 15, 2020 @12:47PM (#60508102) Journal
      There should be a hard limit on in-app purchases within a yearly period.

      Why? This is no different than a casino which allows you to spend as much money as you want throughout the year. So long as you can pay, they let you play.

      For those addicted to casinos, there is self-reporting, where you file with the gaming commission a form attesting you should not be allowed in any casino. This can also include online gambling in those states where it's legal.

      You're an adult. Act like one. Or have we suddenly abandoned the whole, "It's my body and I'll do whatever drugs I want!" attitude?
      • You're an adult. Act like one. Or have we suddenly abandoned the whole, "It's my body and I'll do whatever drugs I want!" attitude?

        Unfortunately, as you can see by current events, illustrated in VIVID detail by all the various movements on social medial and TV, Personal Responsibility has gone right out the window.

        Everyone is now a victim.

        Hell...it was thrown out the window fully I guess bout 10+ years ago at least?

        • Kids these days (Score:4, Insightful)

          by OrangeTide ( 124937 ) on Tuesday September 15, 2020 @03:29PM (#60508710) Homepage Journal

          "The world is passing through troublous times. The young people of today think of nothing but themselves. They have no reverence for parents or old age. They are impatient of all restraint. They talk as if they knew everything, and what passes for wisdom with us is foolishness with them. As for the girls, they are forward, immodest and unladylike in speech, behavior and dress."
          — sermon preached by Peter the Hermit in 1274

          "I see no hope for the future of our people if they are dependent on
          the frivolous youth of today, for certainly all youth are reckless
          beyond words. When I was a boy, we were taught to be discrete and
          respectful of elders, but the present youth are exceedingly wise and
          impatient of restraint."
          — Hesiod, Eighth Century B.C.

      • by Misagon ( 1135 )

        Unfortunately human nature is still human nature, even in our "advanced" society.
        Otherwise we wouldn't have millions of iZombies, smokers, sex addicts etc.

        Surprisingly few people would not be killed by the Gom Jabbar.

      • by waspleg ( 316038 ) on Tuesday September 15, 2020 @04:05PM (#60508838) Journal

        Speaking as someone whose best friend was in and out of rehab for years and died before their 40th birthday. I've also seen it destroy many families. Gambling is as much an addiction as alcoholism and other things. Just snap out of it and be an adult is some cold hearted libertarian bullshit that shows a lack of understanding of the psychology and physiology.

    • Credit card companies, and banks, and the federal reserve, and ISPs, and ARM for making the ISA the chips the iPhones run on, and the person who invented the slot machine. Every else is to blame for someone spending too much money on imaginary casino games.

    • by mysidia ( 191772 )

      There should be a hard limit on in-app purchases within a yearly period. I am sure Apple took their 30 percent of the $150,000.

      No.. That's not a sane idea... Many in-app purchases can be purposeful such as business applications that may require the purchase of user seat licenses at considerable cost per license. How about fix instead the policy allowing apps which charge a per-play fee or which provide as a purchase in-game items or in-game currency that can be "lost", "surrendered", or "placed at ri

  • by Nick ( 109 ) on Tuesday September 15, 2020 @12:16PM (#60507952) Journal

    So they know there are zero payouts, they spend money so they can get more spins and whatnot just to win virtual, worthless currency - and they know this. Am I getting this right? An addiction for a chance of knowingly 'winning' absolutely no real money?

    • Addiction by its very nature is irrational.

      • by gweihir ( 88907 ) on Tuesday September 15, 2020 @12:37PM (#60508052)

        Addiction by its very nature is irrational.

        Very much so. While the rationality of the average person is nothing to write home about, most addicts realize that they have a problem, but they cannot help themselves. If all it took was a rational insight, this would not be much of a problem.

        • by jythie ( 914043 ) on Tuesday September 15, 2020 @12:54PM (#60508148)
          And that is why addiction scares people so much, and we get so much 'addiction is just weakness, I am not weak they are weak OMG this could never happen to me!' assertions. Which is rather ironic since that is one of the things that leads to addiction.. people are scared of being weak, so they don't want to believe it could happen to them, so whatever is happening can not be addiction.. and not too long till the wiring takes hold because at the end of the day what your body and brain do is not your decision.
    • by DogDude ( 805747 )
      The same thing could be said of almost anything that most people use "phones" or "tablets" for.
    • At least it's not like abusing drugs and alcohol, which also make you feel good for a short while with no hope of economic return but also trash your physical wellbeing.
      • At least it's not like abusing drugs and alcohol, which also make you feel good for a short while with no hope of economic return but also trash your physical wellbeing.

        Spending $150,000 on an app in the space of two years is likely to have consequences for your physical wellbeing down the road, unless you are quite wealthy and can easily afford this (which most of these app addicts can not).

    • One way to think of addiction is: Short Term Gratification, Long Term Destruction.

      For some people the instant gratification of drugs, alcohol, tobacco or gambling overwhelms the knowledge of the destructive nature. They know that they are destroying themselves, but NEED to have that "fix."

      If you have never had to deal with that, be grateful. Just because you haven't experienced it, doesn't mean that it isn't real.

  • That micro transactions are ass.
  • A Sign of the times? (Score:4, Interesting)

    by shoor ( 33382 ) on Tuesday September 15, 2020 @12:27PM (#60508004)

    I remember when reading The Valachi Papers that Joe Valachi, the first gangster and 'made man' to talk, commented that people gambled on the numbers racket more during hard times, during the depression for example. I wonder if nowadays more people are turning to these gambling apps because of the quarantine and general low morale we're going through.

  • Is the point that casino style games should be regulated?
    Is the point that they should provide resources to help addicted gamers?
    Is the point to bring attention to addictive games?

    Why should any company who makes one of these games answer questions about it? There companies job is to make games that drive profit, and if they can do that while offering very little in return then that's every better. It doesn't matter if the game is slots or helicopter, people will still become addicted and people will sti
    • with real world physical locations. This means the location itself has a reputation to protect and it means you can pass laws for that physical location to protect people. Las Vegas has rules about cutting gambling off because laws were passed and they allowed those laws to pass because it benefited them to control the worst abuses.

      These companies can operate overseas or out of a PO Box in whatever jurisdiction has the least restrictive laws and most pliable politicians. They don't care about their long
  • Ethics (Score:5, Insightful)

    by backslashdot ( 95548 ) on Tuesday September 15, 2020 @12:36PM (#60508048)

    Maybe the ethical way for a company to handle this is to require proof of assets and income and not allow you to exceed, I dunno, say 10% of your reported assets/income on gambling .. and only allow you to play at all if your income is above $15K a year.

    • Re: (Score:2, Insightful)

      This has to be the dumbest idea ever. I hate that I have to send my personal financial information to the government every year... Now you want me to send it to a bunch of APP companies with dubious security - oh and a reason to sell that information to each other AND anyone else that asks.

      Did you even think before you typed

      • Well, if you're a gambler risks is your thing...

        Anyway, maybe a credit reporting agency can handle the proofing .. they already pretty much have this info. A gambler would just have to authorize the credit company to release their allowed limit. And they can make it such that you should be able to set the upper bound on what that limit is. So if you're a billionaire your limit can still be a $1000 a month .. the app company would have no idea you're a billionaire .. only that your allowable limit per month

    • Obviously humans can't manage their own money and life properly so.. We need a nanny state.

      We need two currencies: Cash as it is now, and Freedom Bucks. Your paycheck is required to put the minimal amount to exceed your debt for the month plus basic expenses into your Cash account, and the rest goes into your Freedom Bucks account.

      Disallow accepting Cash accounts for gaming, entertainment, gambling etc. They can only take Freedom Bucks.

      Hey I'm out of Freedom Bucks ?!?!?!?!?! Oh well. Maybe next we
    • Far too easy to game that system and for people to fall through the cracks. Besides, the app makers are already vehemently denying that what they are doing can be considered gambling.

      The tricky part is that the traditional solution would be to tax the income from the apps and use that tax to fund treatment programs for those who feel they have lost control and want help. But classifying which apps need to be taxed and managing to actually collect that tax reliably in an online environment is problematic.

  • by tinkerton ( 199273 ) on Tuesday September 15, 2020 @12:39PM (#60508062)

    People should put a number on how far things are allowed to slide before intervening instead of tough posturing and telling the losers to man up.
    That is a compromise. If food is made more addictive so that a high percentage of people becomes fat then it's time to intervene. What number would you consider alarming?
    If too many people die from guns it is time to intervene. How many?
    If gambling designers and food designers become better at exploiting the weaknesses of people and the damage of gambling goes up then at some point it is time to intervene.
    If propaganda becomes so powerful that it controls to a large extent what people think then you should intervene.
    How extreme does inequality have to be before you concluding that there is more to it than blaming the losers?

  • Do we outlaw alcohol because a few people can't control their liquor?
  • The article states that only a fraction of the game's players spend money, but, 99/100 is still a fraction. It would be nice to see the actual percentage of users that spend real money...
  • There's a class action settlement against the owner of the game, and the players might be receiving up to 10% of their payments refunded to them. They should give them the option to refund the amount in in-game tokens.

  • by Impy the Impiuos Imp ( 442658 ) on Tuesday September 15, 2020 @01:05PM (#60508188) Journal

    For well over 30 years, home shopping style cable channels have been draining retirees of their life savings by pretending to be their friend. All that did was engender donations to politicians. As will this. Expect little change beyond a warning.

  • A fool and his/her money will soon be parted.
  • and now they have real money sports book apps!

  • > addicted to losing

    They are talking about slashdot itself, right?

  • by John.Banister ( 1291556 ) * on Tuesday September 15, 2020 @02:34PM (#60508516) Homepage
    If I understand it correctly, this problem sounds ripe for a Free Software Foundation style solution. It should be relatively inexpensive to set up a competing app that also doesn't pay out. The big feature of the competing app: at the end of the year, they give all your money back. Take the money. Keep the interest. Return the principal. Put the people who don't return the money out of business. Of course the addicts are still out the time, and once the people who are worse are out of the picture, you'll be hated. But, they'll have it better than they do now. Once you have enough addict cash in the bank, you could branch out into other gambling software that pays out, and returns a large percentage of customer's net losses at the end of the year. As the customer base grows, you'll be able to shave down your margins. keep even more of the competition out of business, and still profit.
    • It's an interesting idea, but I wonder that with interest rates so low at this time, whatever interest is made simply isn't going to be enough to break even on the cost of the application.
    • You want to spend your time making a slot machine app, supplying regular content updates, and manning the live ops?
  • The same idiots who ruled this to be gambling (it isn't) must be the same idiots who ruled that DraftKings isn't gambling (it is).

Don't panic.

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