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Digital trading card platforms are drawing scrutiny for advertising opportunities to earn money for rent, groceries, and other everyday expenses through randomized purchases of sports and Pokémon cards, raising concerns about financial risks and gambling-like practices, Barron’s reports.
According to the outlet, platforms including Rips and Packed have promoted digital trading cards as potential sources of cash, even though customers could lose money on their purchases.
Unlike traditional trading card packs, digital platforms let customers buy randomized cards online. Buyers can typically request physical delivery of their cards or sell them back to the platform for a stated value.
The financial risks can be substantial. Rips estimates that customers purchasing a standard pack have approximately a 50% chance of receiving a card worth less than the purchase price. On Packed, a $100 pack carries at least a 70% probability of producing a lower-value card, Barron’s reported.
The emerging market has attracted investments from companies connected to sports betting and digital collectibles. DraftKings participated in a $24 million funding round for Triumph, the startup behind Rips. The investment valued Triumph at $308 million, according to Barron’s.
Fanatics, Underdog, PrizePicks, and Crypto.com have also entered the digital collectibles market.
Industry representatives have maintained that the transactions involve legitimate retail purchases, not gambling. PrizePicks Chief Legal Officer Jason Barclay has described the company’s digital card offerings as e-commerce transactions.
However, concerns remain about the potential for compulsive spending. Triumph’s responsible purchasing policy directs customers to resources commonly associated with gambling addiction.
The advertising practices have also raised questions about regulatory oversight. The American Gaming Association discourages sports betting advertisements that portray gambling as a solution to financial difficulties, while Massachusetts restricts certain gambling promotions that promise winnings.
Those standards do not necessarily apply to digital trading card platforms, whose legal classification remains a point of debate.
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