NEW YORK (AP) 鈥� MrBeast's ambitious reality show, which the YouTube megastar hopes will expand his giant online reach and turn the corner on recent controversies, is already raising questions from consumer advocates over a partnership with a fintech company.
Prime Video's Thursday premiere of the record-setting 鈥淏east Games" capped off a tumultuous year for Jimmy Donaldson and his production company. Shortly after reaching never-before-seen YouTube subscriber totals, MrBeast began facing heightened scrutiny over the channel's philanthropic efforts, its and that Donaldson has denied.
As MrBeast's loyal following tunes in to they are invited to scan a QR code for a shot at winning their own life-changing money. It's a $4.2 million sweepstakes run by fintech company MoneyLion, an app that sends cash advances 鈥� often for a fee to workers living paycheck to paycheck.
The collaboration is billed as a way for MrBeast, who has sought to regain brand trust in recent interviews with alternative media personalities, to give back to his fanbase while presenting them with MoneyLion's personal finance tools. But consumer advocates warn MoneyLion's early payments 鈥� which are also promoted to giveaway entrants 鈥� in earnings-depleting borrowing cycles with additional fees.
Watchdogs find that those services are not recommendable for younger audiences, making it an unusual partner for MrBeast to introduce to his persuadable fandom.
鈥淭hese types of high-cost, fintech payday loans, wrapped up in fancy apps, just put people in a debt trap where they have to borrow this week鈥檚 pay to pay last week鈥檚 loan and (it) sets them back in their financial goals,鈥� said Lauren Saunders, a director at the National Consumer Law Center who specializes in small dollar lending.
鈥淏east Games鈥� marks Donaldson鈥檚 crossover into television entertainment. The North Carolina native has already captured online attention spans with his highly-produced, fast-paced YouTube videos that often feature absurd stunts and massive cash sums; "Beat Ronaldo, Win $1,000,000鈥� recently pit professional athletes against amateurs in their respective sports.
He's now testing the broad appeal of those viral spectacles as the host of a competition series that promises 鈥渘ail-biting, physical, mental, and social challenges鈥� similar to The $5 million prize is believed to be the largest in reality television history. Donaldson alone 鈥渂uilding a city in a field鈥� for the contestants remaining after an initial series of tests. He gave away $2 million alone in the first episode of the 10-part series, which largely consisted of mental trials as he bribed players to eliminate themselves or their entire teams with cash rewards up to a hundred grand.
The sweepstakes was placed prominently during a supersized game of team cup pong in the second episode. A link also appears in the YouTube description from Thursday's upload of the .
鈥淔or a limited time only, one person watching this right now also has a chance to win $250,000 in the MoneyLion Beast Games Giveaway,鈥� Donaldson said as a QR code and URL flashed across the screen.
MoneyLion's partnership will bring 鈥渇ans closer to the action than ever before,鈥� according to a company press release. Over 1,000 prizes will be awarded to MoneyLion accountholders across eight drawings over the next year. Additional entries can be earned through daily log-ins on the MoneyLion app, where users are promised exclusive, behind-the-scenes content from the series. Consistent with sweepstakes law, participants must be legal U.S. residents ages 18 or older.
Upon entering the giveaway, a popup asks, 鈥淲ant more ways to get money?鈥� with an invitation to borrow money through MoneyLion's loan services. Consumer watchdogs say cash advancements can come with steep costs despite casting themselves as 鈥渘o interest" loans.
Users must pay a sliding 鈥渢urbo鈥� fee to get their 鈥淚nstacash鈥� advancements 鈥渨ithin minutes" instead of waiting the 2-5 days that MoneyLion estimates it would otherwise take to hit an external checking account. The company charges $8.99 for the maximum advance of $100.
That makes MoneyLion one of the 鈥渕ore expensive options in this market,鈥� according to Center for Responsible Lending Senior Policy Counsel Andrew Kushner. Considering the products are geared toward cash-strapped people who need money now, Kushner said most users end up paying the fees.
These apps create a 鈥渃ycle of borrowing鈥� as financially vulnerable users try to keep up with the 鈥渆xtremely high cost of the loan relative to the size,鈥� according to Kushner. The Center for Responsible Lending found that users of these apps experienced a 56% increase in checking account overdrafts. Borrowers who use these 鈥渆arned wage access" services withdrew 36 times a year, according to a 2021 California Department of Financial Protection report.
A alleges that MoneyLion misled users to believe they could easily end monthly memberships necessary to access some installment loans but then refused to cancel those with outstanding loans.
A representative for MrBeast declined to comment. In an emailed statement, a MoneyLion spokesperson said the company pairs financial tools and products to support 鈥渓ong-term financial health and stability鈥� 鈥� all of which will be promoted to Beast Games Giveaway participants. MoneyLion said it will 鈥渃ontinue to collaborate with regulatory bodies鈥� including CFPB, according to the spokesperson, and focus on ensuring its products are 鈥渁ccessible, fair, and designed to create the best outcomes for our customers.鈥�
Its 鈥淚nstacash鈥� fees are 鈥渃learly disclosed,鈥� the spokesperson wrote, and the service helps workers 鈥渂reak the traditional payroll cycle鈥� to 鈥渕eet unexpected financial obligations.鈥�
鈥淭he Beast Games Giveaway is designed exclusively for an 18+ audience and represents a groundbreaking way to combine engaging content with accessible financial education,鈥� the spokesperson said. 鈥淭hrough this collaboration, participants gain exposure to MoneyLion鈥檚 diverse marketplace of financial products, tools, and content.鈥�
Saunders, the consumer protection lawyer, said some lenders provide financial wellness tools that are really just 鈥渟ugarcoating鈥� their high-cost loans.
It's 鈥渃oncerning,鈥� according to Kushner, to advertise such a service toward younger adults who are still developing their sense of financial responsibility and are more susceptible to 鈥渢he slick marketing of this industry.鈥�
鈥淵ou can see at 18 (years old) how that could be a really exciting thing to have in front of you,鈥� Kushner said. 鈥淏ut it can really have negative consequences once you go down the pathway of using it.鈥�
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James Pollard, The Associated Press
