Charles Fain Lehman

Yeah, actually. So there's another study from folks at Southern Methodist University where they have a panel of 700,000 sports bettors. And they show a couple of really interesting things. So only about 5% of people in the panel withdrew more from the apps than they deposited. So 95% of people are losing money. Wow. That's actually nuts. not the interesting thing.

Yeah, actually. So there's another study from folks at Southern Methodist University where they have a panel of 700,000 sports bettors. And they show a couple of really interesting things. So only about 5% of people in the panel withdrew more from the apps than they deposited. So 95% of people are losing money. Wow. That's actually nuts. not the interesting thing.

The really interesting thing is that about 3% in their estimate, about 3% of bettors drive 50% of sports gambling profits. And this, just to go back to the conversation earlier, is what you see in all markets in addictive goods. They follow what's sometimes called a Pareto distribution or power law distribution.

The really interesting thing is that about 3% in their estimate, about 3% of bettors drive 50% of sports gambling profits. And this, just to go back to the conversation earlier, is what you see in all markets in addictive goods. They follow what's sometimes called a Pareto distribution or power law distribution.

The really interesting thing is that about 3% in their estimate, about 3% of bettors drive 50% of sports gambling profits. And this, just to go back to the conversation earlier, is what you see in all markets in addictive goods. They follow what's sometimes called a Pareto distribution or power law distribution.

5% to 10% of the people who are doing the consuming will do 80% to 90% of the consuming. And that's pretty clearly true here as well.

5% to 10% of the people who are doing the consuming will do 80% to 90% of the consuming. And that's pretty clearly true here as well.

5% to 10% of the people who are doing the consuming will do 80% to 90% of the consuming. And that's pretty clearly true here as well.

It's a big part of the story in more ways than one. You know, One component of it is just it's much more readily available, which is to say if I have to go to a casino to gamble, I may not want to take the time out of my day. I may not make the effort at the margin. I may not get drawn in.

It's a big part of the story in more ways than one. You know, One component of it is just it's much more readily available, which is to say if I have to go to a casino to gamble, I may not want to take the time out of my day. I may not make the effort at the margin. I may not get drawn in.

It's a big part of the story in more ways than one. You know, One component of it is just it's much more readily available, which is to say if I have to go to a casino to gamble, I may not want to take the time out of my day. I may not make the effort at the margin. I may not get drawn in.

And so over the long run, you generate fewer people who are addicted because they never get exposed in the first place. This is the virtue of keeping gambling in Las Vegas is you have to go to Vegas to do it.

And so over the long run, you generate fewer people who are addicted because they never get exposed in the first place. This is the virtue of keeping gambling in Las Vegas is you have to go to Vegas to do it.

And so over the long run, you generate fewer people who are addicted because they never get exposed in the first place. This is the virtue of keeping gambling in Las Vegas is you have to go to Vegas to do it.

In Vegas. But then I think to my mind, the much more alarming thing is that app-based gaming facilitates algorithmic discrimination on the part of the sportsbook provider. They can tell, it's actually trivial to tell with modern methods, who the people are who are going to spend the most. They know when you check your bets in the middle of the night. They know when you are watching the game.

In Vegas. But then I think to my mind, the much more alarming thing is that app-based gaming facilitates algorithmic discrimination on the part of the sportsbook provider. They can tell, it's actually trivial to tell with modern methods, who the people are who are going to spend the most. They know when you check your bets in the middle of the night. They know when you are watching the game.

In Vegas. But then I think to my mind, the much more alarming thing is that app-based gaming facilitates algorithmic discrimination on the part of the sportsbook provider. They can tell, it's actually trivial to tell with modern methods, who the people are who are going to spend the most. They know when you check your bets in the middle of the night. They know when you are watching the game.

They know what you are doing and how much you are betting. And then what they can do is algorithmically reinforce that. They can make you offers. They can assign you a personal concierge who encourages you to bet more. This is actually what they do at casinos in Vegas. If you are a whale, a big spender, you'll get all sorts of good stuff comped.

They know what you are doing and how much you are betting. And then what they can do is algorithmically reinforce that. They can make you offers. They can assign you a personal concierge who encourages you to bet more. This is actually what they do at casinos in Vegas. If you are a whale, a big spender, you'll get all sorts of good stuff comped.

They know what you are doing and how much you are betting. And then what they can do is algorithmically reinforce that. They can make you offers. They can assign you a personal concierge who encourages you to bet more. This is actually what they do at casinos in Vegas. If you are a whale, a big spender, you'll get all sorts of good stuff comped.