The House Edge (Part 2 - The Targets & The Tactics)
Last week in Part 1 I walked through how sports betting rewires the brain like a drug. This week, let’s look at how the industry takes advantage of that fact by systematically targeting the most vulnerable among us.
Here are five truths about how sportsbooks find their best “customers” (spoiler: it’s not the sharp bettors who win).
1. Social Media = Their Playground
FanDuel, DraftKings, BetMGM, and ESPN Bet together have 14 million followers across social media. Just one influencer, TimTheTatMan, generated $21 million in value for FanDuel in a single year by promoting bets to his fans. Studies show gambling ads are nearly 4 times more appealing to 11–24 year olds than adults. That is not an accident. It is the business model.
2. Warnings Are Rarely There
In an analysis of 352,000 gambling ads on Twitter, fewer than 1 in 500 included an age warning or “gamble responsibly” disclaimer. Young people do not yet recognize advertising tricks, which makes this omission more dangerous. If tobacco or alcohol brands tried this today, they would be shut down instantly.
3. College Students = Ground Zero
Nearly 60% of college students have bet on sports, with 1 in 10 meeting the definition of pathological gambler. About 6% admit to losing more than $500 in a single day. And yet most campus counseling centers do not even classify gambling as a mental health issue. It falls between the cracks of “substance abuse” and “general counseling.”
4. Personalized Nudges = The Silent Trap
If you have ever downloaded a betting app, you know what happens next: push notifications, text messages, and odds boosts timed to your favorite teams. High-risk users report seeing more ads, more often, because the targeting is personalized. Losing $100? Here is a “risk-free” bet. Have not opened the app in a week? Here is a bonus. It is engineered stickiness.
5. VIP = Very Insidious Program
So-called VIP programs are marketed as rewards for loyal players. In reality, they are systems designed to keep the heaviest losers engaged. DraftKings VIP hosts are even compensated based on betting volume. One widow revealed her husband deposited 440% of his annual salary in a single year while being hounded daily by his VIP host. As one lawyer put it: “If you are in the throes of a gambling addiction, sometimes the most honest relationship you have is with your VIP host.”
Why This Matters
When you line up the tactics, it looks less like “gaming” and more like a predatory funnel: advertise to kids, hook them on campuses, nudge them through notifications, and lock in the big losers with VIP treatment.
Next week in Part 3, we will look at the bigger picture: bankruptcies, family breakdowns, domestic violence, and the way lobbying has kept protections weak. It is the part where society, not just the gambler, pays the bill.
📞 Resources if you or someone you know is struggling:
1-800-GAMBLER • 800gambler.org
NCPG Helpline: 1-800-522-4700
State-by-state directory of resources