The Rise of Social Sportsbook Apps
Social sportsbook apps are mobile gaming platforms that allow users to bet on sports events using virtual or real money. Unlike traditional online sportsbooks, these apps do not require users to verify their age or location, and they can operate in states where sports betting is illegal. Some of the popular social sportsbook apps include Fliff, Wagr, Underdog Fantasy, Dabble and PrizePicks.
These apps claim to be either sweepstakes contests or fantasy games, not subject to the regulatory or cost hurdles faced by sportsbooks. They also market themselves as fun and social ways to engage with sports and friends, offering challenges, leaderboards and tools for smack talk. Some of them even partner with celebrities and influencers to promote their platforms.
However, these apps also pose serious risks to young and vulnerable gamblers, who may develop addiction problems or lose money without proper safeguards. According to the National Council on Problem Gambling, the people who have gambling problems, who are vulnerable to gambling problems and especially youth, can develop gambling problems based on usage of these apps.
The Case of Fliff
Fliff is one of the most popular and controversial social sportsbook apps. It launched in 2019, shortly after the Supreme Court struck down the federal law that banned sports wagering in most of the United States. It allows users to bet on various sports events using virtual currency, which can be earned by watching ads, completing tasks or inviting friends. Users can also make in-app purchases with a credit card and wager actual money.
Fliff claims it functions as a legal sweepstakes contest, not a sports-betting enterprise, a distinction that troubles many stakeholders in the industry. It also says it has measures to prevent underage and irresponsible gambling, such as age verification, self-exclusion and limits on deposits and bets. However, these measures are not foolproof and can be easily bypassed by users.
For example, in the days leading up to the NFL conference championship games in 2023, users of Fliff placed more than 200,000 bets on various outcomes, such as Patrick Mahomes throwing for at least 240 yards, Christian McCaffrey scoring the first touchdown and the usual array of money line, point spread and over-under offerings. Many of these users were under 18, and some of them used real money to place their bets.
The Impact of Social Sportsbook Apps on Young Gamblers
Social sportsbook apps are not only attracting young gamblers, but also endangering them. According to experts, these apps can essentially groom underage people, training them to gamble at ages when they are more susceptible to addiction. They can also expose them to financial losses, legal troubles and mental health issues.
According to a study by the University of Bristol, young people who gamble are more likely to experience anxiety, depression, low self-esteem, substance abuse and suicidal thoughts. They are also more likely to drop out of school, engage in crime and have relationship problems. The study also found that social media and online platforms are the main sources of gambling exposure for young people.
Moreover, social sportsbook apps can also have negative effects on the integrity of sports and the regulation of gambling. By operating in the gray areas of the law, these apps can evade taxes, fees and oversight that apply to traditional sportsbooks. They can also facilitate match-fixing, corruption and fraud, as users can manipulate the outcomes of the events they bet on.
The Need for More Awareness and Action
As social sportsbook apps continue to grow in popularity and reach, there is a need for more awareness and action from various stakeholders, such as parents, educators, policymakers, regulators and the industry itself. They need to work together to protect young and vulnerable gamblers from the harms of these apps, and to ensure fair and responsible gambling practices.
Some of the possible steps that can be taken are:
- Educating young people and their parents about the risks and consequences of gambling, and providing them with resources and support to prevent or treat gambling problems.
- Enforcing stricter age verification and location verification methods for social sportsbook apps, and imposing penalties for violations.
- Regulating social sportsbook apps as gambling operators, and requiring them to pay taxes, fees and comply with the same rules and standards as traditional sportsbooks.
- Monitoring and investigating social sportsbook apps for any signs of illegal or unethical activities, such as money laundering, fraud or match-fixing.
- Promoting safer and healthier alternatives to gambling, such as sports participation, hobbies, volunteering or socializing.
Social sportsbook apps are not just harmless games. They are potentially dangerous and addictive forms of gambling that can have serious impacts on young and vulnerable gamblers. Therefore, they need to be treated with caution and care, and not with complacency and indifference.
