There is a prevalent misconception among many individuals that utilizing real-money gaming applications can serve as a quick source of additional income. However, beneath the attractive advertisements and enticing incentives lies a perilous cycle of financial losses, addiction, and distress.
Abhishek Kumar, a Sebi-registered investment adviser and the founder of Sahaj Money, recently highlighted on LinkedIn a collection of concerning instances that shed light on the profound impact these apps are having on ordinary people.
SMALL VICTORIES, SIGNIFICANT LOSSES
Abhishek Kumar detailed an instance where a user believed that the rummy app he had installed would facilitate easy earnings. Initially winning small amounts, such as “Rs 5,000 here, Rs 10,000 there,” the individual soon found themselves ensnared.
“I lost Rs 40,000 before I realized the predicament,” Kumar stated.
A similar pattern emerged among numerous users. One individual incurred losses of Rs 2 lakh within a year. A schoolteacher even resorted to selling their land, while a young employee earning Rs 50,000 monthly borrowed from acquaintances to sustain their gameplay.
INSIGHT INTO THE OPERATIONS OF GAMING COMPANIES
Insiders from gaming companies, as per Kumar, have divulged the operational tactics of these apps. They categorize heavy spenders as “whales” and maintain teams that urge them to make additional deposits on a daily basis.
“Every aspect is tailored to target your dopamine receptors,” he remarked. “Although you believe you are making informed card selections, the reality is quite the opposite. The system is inherently biased from the outset.”
The game dynamics are meticulously crafted. Initial successes bolster players’ confidence, only for the difficulty level to escalate once they are hooked. Bots, near-misses, and enticing bonuses all form part of the strategic design, as outlined by Kumar.
THE MYTH OF ‘SIDE INCOME’
Many players delude themselves into thinking that they are just one round away from recouping their losses. However, the human brain struggles to accept defeat easily, persisting in the pursuit of “just one more attempt.”
Kumar cautioned that this mentality is precisely why a significant number of individuals spiral deeper into this cycle.
“Your mind interprets losses as temporary setbacks. That’s the snare,” he expressed. “450 million Indians collectively lost over Rs 20,000 crore through this approach, chasing after money that was never rightfully theirs.”
ANALOGY TO HIGH-RISK TRADING
Kumar drew a parallel between this behavior and the high-risk nature of day-trading in the stock market. While stock markets contribute to genuine wealth creation over time, gaming apps lack this attribute. “91% of F&O traders incurred losses last year. Gaming mirrors this scenario, albeit devoid of any underlying value creation. Unlike stocks that generate wealth gradually, gaming merely depletes it,” he added.
THE RELIEF OF BANS
Recent restrictions imposed on select gaming apps have assisted some users in breaking free from their addiction. Nevertheless, Kumar stressed, “Yet, bans alone are insufficient; true recovery necessitates counseling, support