Fintech Takes Fintech Takes: Gambling, Finance, and the Fallout
Welcome back to the Fintech Takes podcast. I’m your host, Alex Johnson, and today we’re digging into one of the most urgent (and underdiscussed) financial issues in America: gambling. My guest is Alex DeMarco, founder and CEO of MoneyStack, who’s helping reframe gambling addiction not just as a behavioral health issue, but as a financial systems crisis.
Since 2018, when the Supreme Court cracked open the door to state-by-state legalization of mobile sports betting, we’ve seen a gold rush in gambling. Operators are now pulling in more than $70B annually (ads are everywhere, the apps are engineered for nonstop engagement, and the harm is rising fast). In NJ, one of the first states to legalize, 6% of adults are already experiencing moderate to severe gambling-related issues (double the national average).
We connect the dots between gambling and familiar fintech business models: the same behavioral nudges, same VIP economics, the same revenue dependence on a vulnerable sliver of power users. If overdraft fees and gamified trading feel predatory, this is that (but on steroids).
We unpack:
-
Why sports betting apps now hold three times more per wager than old-school sportsbooks
-
How engagement tactics mimic (and often outstrip) the most addictive elements of gamified finance
-
Why we’re watching investing and gambling blur into one screen (and one behavior)
-
What proactive financial intervention might look like, and why most help comes too late
-
How banks and fintechs can step up (detecting risk early, training advisors, and supporting families in recovery)
We close with this big question: when gambling is mobile, funded from a checking account, and styled like Robinhood … can the financial industry really say it’s not their problem?
This episode is brought to you by:
Newline™ by Fifth Third is an innovative, API-first platform that enables fintechs to launch embedded payment, card and deposit solutions directly with Fifth Third Bank. Visit Newline53.com to see how Newline can elevate your business.
The world needs MoR. With Paddle as your Merchant of Record (MoR), the global growth is yours. The risk, compliance and accountability are ours. Simple. Paddle offers all the benefits of an enterprise-grade billing system but with MoR flexibility, MoR control, and MoR focus on your core product. Visit paddle.com to learn more.
Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/
And for more exclusive insider content, don’t forget to check out my YouTube page.
Follow Alex (DeMarco):
LinkedIn: https://www.linkedin.com/in/alexdemarco/
MoneyStack: https://www.linkedin.com/company/moneystack/
Follow Alex (Johnson):
YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos
LinkedIn: https://www.linkedin.com/in/alexhjohnson