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How social casinos leverage Facebook user data to target vulnerable gamblers

She continued spending, hiding it from her husband. But, once her free chips ran out, she had to buy more to keep playing. Those people who, like Suzie, appear to have very severe gambling problems, or gambling-like problems, they can't just walk away. 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. Facebook's website shows how it tracks people online, and can predict who is likely to spend big by analyzing user data. But then the question is, well, OK, like, let's be really clear, what rule do you want to write? Kelly showed me hundreds of messages between her and Big Fish Casino. 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. It charges a premium to nudge players to spend more, to target people whose online behavior might be a sign of addiction. Whyte said their helpline is increasingly filled with people addicted to social casinos, and they've lost serious money. 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. This was a daily thing, back and forth. 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. Social casinos now use behavioral analysis software to quickly identify people who are likely to become big spenders. Lessin wrote that he wasn't proud of their work with slot machine companies. Politics Jun Nation Jun Health Jun Thursday, Jun 4. If you could go back in time to that moment when you were about to download the app, what would you tell yourself? It's a category that, you know, never stops growing. Nate Halverson of Reveal at the Center for Investigative Reporting has the story of this treacherous platform for addiction. If you have an addiction, you're screwed. 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. It was like a friendship. I'm fine with it, he wrote, just not proud of it. And they also sent, of course, chips to keep me playing. They refer to their VIPs as whales, a term taken from the casino industry to describe big spenders. These apps bundle together games like poker, roulette and slot machines. World Agents for Change. Brotons worked for Aristocrat, the same company that owns Big Fish Casino. 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. 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. Has anything changed? Support Provided By: Learn more. He designed the VIP system to target the tiny fraction of players who will actually pay to play the games. You know, I had to come clean with my husband. It's the number one category on Facebook. 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. It's a very highly lucrative but somewhat secretive industry that has exploded across the United States in the past decade. And you know, my mother passed away in They sent me flowers. We tracked down footage from a tech conference of Jose Brotons, who helped pioneer the VIP system for social casinos. He said real casinos would be required to cut her off, or face big fines. Do we want hyper-targeted ads from beer companies to alcoholics? Because they don't pay real money. The company never did. And one category, called social casinos, has quickly become a multi-billion dollar industry. I said, I think we might lose. Every year, more people are playing games on their phones. He now runs his own venture capital firm. But companies like Big Fish claim their games are just entertainment, and have avoided any gambling regulations. And again, no one's tracking this, because it's not being regulated. Don't do it. He is speaking on stage to a roomful of game developers. 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. Lessin won't discuss his time at Facebook, but agreed to speak generally about how companies are targeting people like Suzie Kelly. 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. 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. I spoke to former employees of these social casinos. Suzie Kelly is a grandmother from suburban Dallas. No, of course, we don't want those things, right? To share your story, go to revealnews. There was a commercial for Big Fish Casino. But, she is still dealing with near financial ruin from the game. 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. In the U. Kelly asked Big Fish Casino to delete or permanently ban her from playing, nearly a dozen times. The Latest. Five years ago, she and her husband were thinking about retirement. Sam Lessin is a former top executive at Facebook. Like, no thinking person is like, that's great. He said social casino games appear to be five times more addictive than traditional casinos. Health Long-Term Care.{/INSERTKEYS}{/PARAGRAPH} I thought it was a casino-casino at first, and then I realized it was a game. Read Oct 21 FBI warned of white supremacists in law enforcement 10 years ago. And how are you going to enforce that rule? 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. Read Jun 04 Some Louisville police stage protest, walking out on mayor. Read Jun 04 Emotions run high as anti-lynching bill stalls in Senate. Do we want hyper-targeted ads from casinos to gambling addicts? Facebook helps social casinos find those potential whales. But, all that changed one afternoon, when she sat down to watch TV. Facebook makes hundreds of millions of dollars selling virtual chips to players like Kelly. But there are no regulations on social casino games. I mean, it sounds disgusting, right? The game she downloaded is part of a rapidly- growing industry called "social casinos" that launched on Facebook about 10 years ago. Kelly's slot machine game was free to play, at first. You don't know this until you play this game, but you've got a problem. {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. There is another company profiting from these games. But back in , he wrote an email to his then-boss and close friend, Mark Zuckerberg. She is now getting help for her gambling addiction, and says she no longer spends money on Big Fish. 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. But new evidence shows game developers are targeting vulnerable users, all with the help of Facebook and its massive trove of personal data. She decided to quit, and emailed the game company.