Investigation: How Sports Betting Apps Use Data to Keep Losing Players Hooked

By Billy Briefman · October 10, 2026 · 2 min read read

Watch: Inside Our $22K Sports Betting Experiment A ProPublica investigation into the sports betting industry reveals how major platforms like DraftKings and FanDuel use sophisticated data and...

Watch: Inside Our $22K Sports Betting Experiment

A ProPublica investigation into the sports betting industry reveals how major platforms like DraftKings and FanDuel use sophisticated data and aggressive marketing tactics to retain users who show signs of problem gambling.

Originally reported by ProPublica. ProPublica

The report details how these companies track user behavior in real-time, offering "bonus bets" and personalized incentives to individuals who have lost significant sums of money. While the industry maintains that it promotes responsible gaming, internal documents and former employees suggest that the primary goal remains maximizing the "lifetime value" of every customer, even those in financial distress.

Data-Driven Retention Tactics

According to the ProPublica report, betting apps utilize complex algorithms to identify "VIP" players—users who wager large amounts frequently. Once identified, these players often receive direct communication from dedicated hosts who offer perks to keep them active on the platform.

The investigation found that these incentives often arrive precisely when a user stops betting or after a major loss. This practice, according to addiction experts cited in the report, directly contradicts the industry's public commitment to harm reduction and responsible gambling practices.

Regulatory Gaps and Consumer Risk

The rapid legalization of sports betting across the U.S. has outpaced the development of robust consumer protections, according to the findings. While some states require apps to provide "cool-off" periods or self-exclusion lists, ProPublica discovered that users can often bypass these hurdles or find themselves targeted by rival apps immediately after attempting to quit.

Advocates for stricter regulation argue that the current system places the burden of restraint entirely on the individual, rather than holding the multi-billion dollar corporations accountable for predatory software design. The report highlights how the gamification of these apps—using lights, sounds, and frequent notifications—mimics the addictive qualities of traditional slot machines.

As the industry continues to expand, lawmakers and public health officials face increasing pressure to address the rising rates of gambling addiction linked to mobile betting platforms.

This article is based on reporting originally published by ProPublica. Channel RVA provides this coverage with additional local context for the Richmond community.