🍒 How social casinos leverage Facebook user data to target vulnerable gamblers | PBS NewsHour

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Read Oct 21 FBI warned of white supremacists in law enforcement 10 years ago. And again, no one's tracking this, because it's not being regulated. And one category, called social casinos, has quickly become a multi-billion dollar industry. Sam Lessin is a former top executive at Facebook. He said real casinos would be required to cut her off, or face big fines. Support Provided By: Learn more. Because they don't pay real money. Nation Jun World Jun Health Jun Politics Jun By Tom Foreman Jr. Has anything changed? Social casinos now use behavioral analysis software to quickly identify people who are likely to become big spenders. Suzie Kelly said the first time she tried to quit, Big Fish called her on the phone, not to cancel her account, but to assign her a personal VIP host, Byron Scott, who gave her free chips to keep her from leaving. You know, I had to come clean with my husband. It charges a premium to nudge players to spend more, to target people whose online behavior might be a sign of addiction. If you have an addiction, you're screwed. And they also sent, of course, chips to keep me playing. There was a commercial for Big Fish Casino. Read Jun 05 Trump administration moves forward with plan to end wild bird protections. To share your story, go to revealnews. I would say that my spending increased to hundreds of dollars and thousands of dollars within the first month. I don't want to lose everything. The Latest.{/INSERTKEYS}{/PARAGRAPH} She decided to quit, and emailed the game company. Behaviors like increasing your bet, or playing frequently, are signals to the companies, and they target these players with heavy marketing, and label them, proto-whales, as Brotons explained to a roomful of game developers back in We are now capable of predicting proto-whales within their first gaming session, so we can assign a very high likelihood that a person's going to be a proto-whale. But companies like Big Fish claim their games are just entertainment, and have avoided any gambling regulations. None wanted to go on camera, but described a darker side, saying it was widely known some players were addicted, and their warnings to management went ignored. Facebook makes hundreds of millions of dollars selling virtual chips to players like Kelly. He now runs his own venture capital firm. The company never did. You know, we're going to have to live in a world where both very, very good people, and very, very bad people have better tools. In the U. One player spent so much on the game, she couldn't afford her prescription medicine, and they told me another's home was in foreclosure. If you have spent hundreds or thousands of dollars playing a social casino game on Facebook or a mobile device, Reveal wants to hear from you. I'm fine with it, he wrote, just not proud of it. It's the number one category on Facebook. This was a daily thing, back and forth. It was like a friendship. You don't know this until you play this game, but you've got a problem. Kelly's slot machine game was free to play, at first. You've got to think that about 3 percent of your users are going to be generating 80 percent to 90 percent of the value for the company. And how are you going to enforce that rule? Like, no thinking person is like, that's great. But, all that changed one afternoon, when she sat down to watch TV. It's a very highly lucrative but somewhat secretive industry that has exploded across the United States in the past decade. The game she downloaded is part of a rapidly- growing industry called "social casinos" that launched on Facebook about 10 years ago. Read Jun 05 What to read, listen to and watch to learn about institutional racism. But back in , he wrote an email to his then-boss and close friend, Mark Zuckerberg. But then the question is, well, OK, like, let's be really clear, what rule do you want to write? {PARAGRAPH}{INSERTKEYS}Every year, more people are playing games on their phones, and a category of apps called social casinos has quickly become a multi-billion dollar industry. They only take money, to give you virtual chips to continue to play on their app. Facebook helps social casinos find those potential whales. Saturday, Jun 6. There is another company profiting from these games. It's a category that, you know, never stops growing. He said social casino games appear to be five times more addictive than traditional casinos. Do we want hyper-targeted ads from casinos to gambling addicts? And you know, my mother passed away in They sent me flowers. It's very good for gaming companies because they can decide to target on Facebook, or on mobile, you know, specific users, or just the whales. Nate Halverson of Reveal at the Center for Investigative Reporting has the story of this treacherous platform for addiction. Don't do it. I mean, it sounds disgusting, right? No, of course, we don't want those things, right? Whyte said their helpline is increasingly filled with people addicted to social casinos, and they've lost serious money. She is now getting help for her gambling addiction, and says she no longer spends money on Big Fish. I thought it was a casino-casino at first, and then I realized it was a game. Facebook's website shows how it tracks people online, and can predict who is likely to spend big by analyzing user data. Do we want hyper-targeted ads from beer companies to alcoholics? He designed the VIP system to target the tiny fraction of players who will actually pay to play the games. Suzie Kelly is a grandmother from suburban Dallas. These apps bundle together games like poker, roulette and slot machines. I spoke to former employees of these social casinos. Five years ago, she and her husband were thinking about retirement. Every year, more people are playing games on their phones. But there are no regulations on social casino games. Brotons worked for Aristocrat, the same company that owns Big Fish Casino. Lessin won't discuss his time at Facebook, but agreed to speak generally about how companies are targeting people like Suzie Kelly. Suzie Kelly joined a lawsuit last year in the state of Washington, where Big Fish Casino is based, arguing that the game constitutes illegal gambling, and she is asking for her money back. He is speaking on stage to a roomful of game developers. Facebook declined to speak on camera, but sent a written statement saying that while they don't build ad products specific to social casinos, they understand that certain games or products can impact some people differently, and they are working to understand the long term impact of certain kinds of content. If you could go back in time to that moment when you were about to download the app, what would you tell yourself? Kelly asked Big Fish Casino to delete or permanently ban her from playing, nearly a dozen times. Every year, we see new companies out of nowhere coming up with amazing games, amazing IP, launching on Facebook, launching on mobile, making significant money. Lessin wrote that he wasn't proud of their work with slot machine companies. Kelly showed me hundreds of messages between her and Big Fish Casino. But new evidence shows game developers are targeting vulnerable users, all with the help of Facebook and its massive trove of personal data. They refer to their VIPs as whales, a term taken from the casino industry to describe big spenders. Those people who, like Suzie, appear to have very severe gambling problems, or gambling-like problems, they can't just walk away. She continued spending, hiding it from her husband. But, she is still dealing with near financial ruin from the game. But, once her free chips ran out, she had to buy more to keep playing. We tracked down footage from a tech conference of Jose Brotons, who helped pioneer the VIP system for social casinos. We obtained leaked company documents that show how his VIP system tracks players by their Facebook IDs, closely monitors their game play, and then prods people to keep them spending. I said, I think we might lose. Big Fish declined our request for an interview, but sent a written statement saying the company is "dedicated to delivering great entertainment experiences," and that "we strive to ensure that our social games comply with all applicable standards, rules and requirements.