NEW YORK — YouTube star MrBeast’s spectacular reality show aims to expand his massive online audience while seeking to overcome recent controversies. However, this collaboration with a fintech company is already raising questions among consumer advocates.
The launch of “Beast Games” on Prime Video last Thursday marked a tumultuous year for Jimmy Donaldson and his production company. Having just reached an unprecedented number of YouTube subscribers, MrBeast has faced increased criticism over previous content deemed inappropriate, his philanthropic actions, the work culture within his team as well as allegations over unsafe filming conditions, which Donaldson denied.
MrBeast fans can follow 1,000 participants as they compete to win a $5 million prize during “Beast Games,” while also having the opportunity to scan a QR code for a chance to win a transformative sum as well. This $4.2 million drawing, organized by the MoneyLion app, offers cash advances — often with fees — to workers living hand-to-mouth.
The cooperation is being touted as a way for MrBeast to regain his brand trust in recent interviews with alternative media personalities, while also offering his audience financial management tools powered by MoneyLion. However, consumer advocates warn against MoneyLion’s prepayments, which are also promoted to participants as payday loans that can trap users in exhausting debt cycles.
Observers note that these services are not recommended for a young audience, which makes this partnership surprising for MrBeast and his impressionable audience.
“These types of high-cost payday loans, packaged in an attractive guise, trap people in a debt trap where they must borrow this week’s paycheck to pay off last week’s paycheck, jeopardizing their progress towards financial goals,” commented Lauren Saunders, director at the National Consumer Law Center, who specializes in small-dollar loans.
“Beast Games” represents Donaldson’s move to traditional television. The North Carolina native has already captivated internet users with his hyper-produced YouTube videos often punctuated with absurd stunts and massive sums of money; the “Beat Ronaldo, Win $1,000,000” challenge recently pitted professional athletes against amateurs in their respective disciplines.
He’s now exploring the scope of these viral shows as the host of a competitive series promising physical, mental and social challenges similar to those in Netflix’s fictional drama series “Squid Game.” With $5 million at stake, this prize is estimated to be the highest in reality TV history. Donaldson recently revealed he spent $14 million just to “build a city in a field” for the remaining participants after a series of preliminary tests. In the first episode of this ten-part series, he gave away $2 million, primarily through mental trials where he tricked players into eliminating themselves or their entire teams with rewards of up to $100,000. dollars.
The draw was highlighted during a game of team pong in the second episode and a link was included in the description of Thursday’s YouTube video about the first round of Beast Games in Las Vegas.
“For a limited time, one assist also has the chance to win $250,000 in the MoneyLion Beast Games Giveaway,” Donaldson said as a QR code and URL appeared on screen.
The partnership with MoneyLion promises to bring “fans closer to the action like never before,” according to a company release. More than 1,000 prizes will be awarded to MoneyLion account holders across eight draws over the coming year. Contestants can earn additional entries by logging into the MoneyLion app daily, where they can access exclusive behind-the-scenes content from the series. Pursuant to Sweepstakes law, entrants must be legal residents of the United States 18 years of age or older.
Upon entering the contest, a pop-up message asks: “Do you want more ways to get money?” by inviting users to borrow through MoneyLion’s lending services. Consumer advocates say these cash advances can be costly despite being presented as “interest-free” loans.
Users are charged a small “turbo fee” to receive their “Instacash” advances “within minutes” instead of waiting the 2 to 5 days MoneyLion estimates it takes to reach an external bank account. The company charges $8.99 for the maximum advance of $100.
That makes MoneyLion one of the “more expensive options in this market,” according to Andrew Kushner, senior policy attorney at the Center for Responsible Lending. Since these products are aimed at people in financial distress who need money quickly, Kushner says most users end up paying these fees.
These apps create a “cycle of borrowing” as financially vulnerable users try to juggle the “extremely high cost of the loan relative to its size,” according to Kushner. The Center for Responsible Lending found that users of these apps saw their bank overdrafts increase by 56%. According to a 2021 California Department of Financial Protection report, borrowers using these payroll services made 36 withdrawals per year.
A 2022 lawsuit by the Consumer Financial Protection Bureau alleges that MoneyLion misled its users into believing they could easily terminate monthly memberships needed to access certain loans, but then refused to cancel those which were linked to unpaid loans.
A representative for MrBeast declined to comment. In an emailed statement, a MoneyLion spokesperson said the company combines financial tools and products to support “long-term financial health” — all promoted to Beast Games Giveaway participants. MoneyLion also said it will continue to work with regulatory agencies, including the CFPB, to ensure its products are “accessible, fair and designed to drive the best outcomes for our customers.”
Its “Instacash” fees are “clearly exposed,” the spokesperson added, and the service helps workers “break the traditional payroll cycle” in order to “deal with unforeseen financial obligations.”
“The Beast Games Giveaway is designed exclusively for audiences aged 18 and over and represents an innovative way to combine engaging content and accessible financial education,” the spokesperson said. “Through this collaboration, participants discover the wide range of financial products, tools and content offered by MoneyLion.”
Saunders, the consumer protection lawyer, added that some lenders offer financial wellness tools that are really just “pretty packaging” for expensive loans.
According to Kushner, it is “concerning” to promote such a service to young adults who are developing a sense of financial responsibility and who are more vulnerable to “attractive marketing strategies of this sector.”
“It’s understandable that at 18 this might seem very attractive,” Kushner added. “But it can really have negative consequences if we go down that path.”
