NEW YORK — MrBeast, the popular YouTuber, is making waves with his new reality show aiming to broaden his vast online audience and overcome recent controversies surrounding his channel. However, this partnership with a fintech company has sparked concern among consumer advocates.
The highly anticipated premiere of “Beast Games” on Prime Video kicked off on Thursday, marking a challenging year for Jimmy Donaldson, known as MrBeast. Despite breaking records with his YouTube subscriber count, he has been under scrutiny for past content deemed inappropriate, the philanthropic endeavors associated with his channel, workplace culture, and claims of hazardous conditions on set, allegations that Donaldson has denied.
As fans tune in to witness 1,000 competitors vie for a grand prize of $5 million in “Beast Games,” viewers are given the opportunity to scan a QR code for a chance to win money themselves. This initiative is part of a $4.2 million sweepstakes in collaboration with the fintech platform MoneyLion, which provides cash advances—often for a fee—targeting individuals who live paycheck to paycheck.
The partnership is framed as a way for MrBeast to reconnect with his audience following a series of media interviews aimed at restoring trust, while also offering viewers a chance to explore MoneyLion’s financial offerings. Nevertheless, consumer advocates express concerns that MoneyLion’s expedited payment options may function as payday loans, potentially trapping financially vulnerable users in cycles of debt fueled by additional fees.
Consumer watchdogs have raised alarms regarding the suitability of these financial services for younger audiences, making this an unexpected alliance for MrBeast, who often engages with a young and impressionable fanbase. “High-cost fintech payday loans, masked in alluring apps, only entrap individuals in a cycle of borrowing, forcing them to use their current week’s paycheck to settle last week’s loan, ultimately hindering their financial aspirations,” warned Lauren Saunders, who specializes in small-scale lending at the National Consumer Law Center.
“Beast Games” represents Donaldson’s venture into television competition. The North Carolina native is famous for his captivating YouTube content rich in extravagant challenges and immense cash rewards; one recent video had professional athletes competing against amateurs with the promise of winning $1 million. Now, he’s testing the appeal of these viral moments through a competition series featuring “exhilarating physical, mental, and social challenges,” reminiscent of Netflix’s “Squid Game.” With a reported $5 million prize, believed to be the largest in reality TV history, Donaldson has revealed that he spent $14 million constructing an elaborate set for the contestants. The inaugural episode alone featured him distributing $2 million amidst challenges, including offering players cash rewards to eliminate themselves or teams.
The predominate sweepstakes featured prominently during an extravagant game in the second episode. During the live stream, a QR code and URL prompted viewers to enter the sweepstakes, leading to the chance to win $250,000. MoneyLion indicated that their partnership will provide participants with unprecedented access to the show, with over 1,000 available prizes to be allocated through drawings over the next year, achievable through consistent log-ins to the MoneyLion app. Eligibility criteria state that participants must be U.S. residents aged 18 or older.
Upon entering, contestants are greeted with a popup promoting additional borrowing opportunities through MoneyLion. Consumer advocates caution that these cash advances come with hefty fees, despite labeling these loans as “no interest.” A sliding “turbo” fee allows users to receive advances almost instantly for an additional charge of $8.99 per $100.
Experts note that MoneyLion’s services can be particularly costly compared to competitors. Andrew Kushner from the Center for Responsible Lending points out that these products are often targeted at those most in need of quick cash, resulting in most users incurring fees. The use of such apps has been observed to exacerbate financial problems, leading to an increase in checking account overdrafts. A report from a California financial authority highlights that users of “earned wage access” services often withdraw cash excessively throughout the year.
Furthermore, a lawsuit filed by the Consumer Financial Protection Bureau in 2022 accused MoneyLion of deceiving customers about their ability to cancel monthly memberships needed for accessing certain loans, only to refuse such cancellations when outstanding loans existed.
While MrBeast’s team opted not to comment, a spokesperson for MoneyLion defended their offerings, claiming their goal is to forge long-term financial health for users through a diverse array of financial tools marketed to “Beast Games” participants. They also intend to work alongside regulatory bodies to ensure their services are fair and beneficial.
Despite the claims made by MoneyLion about transparency regarding their fees, consumer rights advocates remain skeptical. They warn that the marketed financial tools sometimes merely serve to distract from the truth behind their expensive loans, especially for younger individuals still developing their financial acumen.
Kushner expresses concern over how appealing these services may seem to an 18-year-old, recognizing that the consequences of such borrowing can be dire in the long run. “This could definitely seem like an attractive opportunity for a young adult, but it may lead them down a path fraught with negative repercussions,” Kushner concluded.