The Privacy Parlay: How Data Mining and Targeted Ads Drive Gambling Addiction
Emily Weisser
I. Introduction
In the digital age, the gambler is not just the person placing the bets, they are also the data being wagered on. Every click, swipe, and deposit becomes part of a high-stakes game where the house rarely loses. Much like a parlay bet–where every leg must hit for the gambler to win–the modern gambling industry relies on data collection and targeted advertising to increase the number of returning customers, boosting its own profits while building a predictive framework that treats users as inputs rather than individuals. In this “privacy parlay,” the odds are overwhelmingly in favor of the house– the gambling operator.
The first leg of this parlay is the mining of consumer data, drawn from government-mandated identity verification information and voluntary interactions. Operators combine this data to build comprehensive behavioral profiles. The second leg involves monetizing this data through micro-targeted advertising, designed to exploit psychological vulnerabilities and nudge users toward repeated engagement. The third leg uses these insights to promote repeat play, conflating addiction with ordinary customer loyalty.
Despite the immense power of this system, the current regulatory landscape offers fragmented, inconsistent protection for consumers, leaving critical gaps in oversight. This essay explores data-driven gambling in the post-Professional and Amateur Sports Protection Act (“PASPA”) era and discusses the argument that a unified federal framework is necessary to regulate the privacy parlay–ensuring that data-driven gambling operates transparently, ethically, and in a manner that protects consumers from exploitation.
