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Virginia Lottery Loyalty Program Exploits Gambling Addiction

Written by Reisy Rosenfeld | Dec 16, 2024 4:24:03 PM

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A recent advertisement from the West Virginia Lottery has raised concerns about the potential harms of the state's new digital lottery and gaming platform, iPlay. The ad, which showcases scenes of outdoor adventures and animated characters, promotes the convenience of gambling from home. While the platform may seem appealing, the accompanying loyalty program, PlayOn, rewards customers who repeatedly engage in lottery games, sparking questions about the ethics of incentivizing repeat gambling behavior.

As the West Virginia Watch noted, lotteries are often criticized for being a regressive form of taxation, disproportionately affecting low-income individuals. Studies have shown that poorer households spend significantly more of their income on lotteries than wealthier ones. A The Economist report revealed that low-income people spend more than 30 times their income on lottery tickets compared to higher-income households. While gambling is voluntary, the design of these systems, especially when paired with loyalty programs that encourage repeated play, raises concerns. The promise of a big win can be a powerful motivator, particularly for those seeking an escape from poverty. Unfortunately, as people continue to gamble, their odds of developing an addiction increase, exacerbating the cycle of financial distress.

The concerns about the West Virginia Lottery’s new platform are not isolated. The proliferation of online sports betting has further contributed to the normalization of gambling in daily life. Sports betting, particularly through apps like DraftKings and FanDuel, has become ubiquitous. These platforms are not only advertised constantly but are now integrated into the sports experience itself, with odds and analytics displayed during games. Billboards featuring celebrities like Vanessa Hudgens promote “free” betting money, further entrenching the idea that gambling is a harmless form of entertainment.

West Virginia was one of the first states to legalize sports betting in 2018, prior to the Supreme Court’s decision allowing states across the country to implement sports wagering. Six years later, sports betting is widespread, and its effects are becoming more evident. Studies suggest that states with online sports betting are experiencing an increase in betting activity, higher credit card debt, and a reduction in savings. For every dollar spent on sports betting, households have seen a $2 reduction in investments, undermining their financial stability. In addition to financial harm, there are signs that the rise in online gambling is linked to an increase in bankruptcies, auto loan delinquencies, and even domestic violence. Problem gambling support centers are reporting a higher number of calls for help, and many of these callers are younger than in the past.

While some may argue that gambling is a personal choice and should be legal, the rapid expansion of the industry, particularly with the rise of online sports betting, raises important ethical concerns. The growth of gambling, especially through apps that reward frequent play, is likely to have long-term social consequences. The financial harm caused by gambling addiction, coupled with the potential damage to families and communities, requires a careful reexamination of the policies that are driving this rapid expansion.

To mitigate the harms of gambling, restrictions on advertising and incentives like loyalty programs should be considered. While some may view this as an overreach, the harm caused by the normalization of gambling cannot be ignored. The focus should be on protecting vulnerable individuals from addiction while preserving the integrity of sports. Until then, platforms like the West Virginia Lottery’s iPlay and other online betting apps will continue to entice people into a cycle of gambling addiction, with potentially devastating consequences for both individuals and communities.

If you or your loved one are struggling with addiction, reach out to Avenues Recovery today to receive the help you deserve. Our staff are experts in the field of addiction, and will help you recover with a personalized treatment plan, including a wide range of therapies. Contact us today to begin your journey to sobriety in a safe and supportive environment.