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Time to read: 5 min

Labor told to close Meta loophole on illegal gambling ads

Australia flag with Meta logo on phone

Ministers in Australia face backlash over why the Labor government has failed to close the gap as parts of its wider reform of the gambling advertising law.

Meta’s Facebook and Instagram have come under fire in Australia for promoting illegal online casino ads, promotions and content to unrestricted audiences.

Multiple incidents have been raised with the Australian Communications and Media Authority (ACMA), but the watchdog appears ineffective as its enforcement is hindered by a regulatory loophole.

Under Section 61EA(3) of Australia’s Interactive Gambling Act 2001, the advertising of prohibited online gambling services is outlawed. However, technicalities governing enforcement require ACMA to determine whether advertising appearing on a website can be considered as being published in Australia.

For websites, the existing test requires the regulator to be satisfied that the majority of people accessing the platform are physically present in Australia. This creates an enforcement problem when dealing with global media and digital platforms such as Meta-owned Facebook and Instagram, whose overall audiences are overwhelmingly international.

“To make an advertising breach finding, the ACMA needs to be satisfied that where ads are appearing on websites the majority of persons who are accessing the site are physically present in Australia,” the regulator informed.

As such, an illegal casino advertisement can potentially be targeted at, or widely viewed by, Australian consumers without meeting the legal threshold required for ACMA to make an advertising breach finding against the platform hosting it.

There are claims unlicensed casinos have exploited this weakness by publishing campaigns through global platforms while directing significant reach and exposure towards Australian viewers.

Reports detail campaigns promoting online slots, roulette, blackjack and other casino products prohibited from being offered online in Australia. Other campaigns have gone further by promoting rogue betting apps, casino scams and websites impersonating recognised Australian gambling brands.

Licensed operators, Crown Melbourne and The Star, have both been spoofed by offshore websites despite neither casino group operating an online casino service in Australia – a liability brought to the ACMA.

Canberra spotlight

The circumstances have generated a political backlash in Canberra, where ministers face questions over why the Labor government has failed to close the enforcement gap as part of its wider mandate to reform Australia’s federal framework governing gambling advertising and marketing.

Significantly, the loophole remains unresolved under the current package of gambling advertising reforms, despite the government seeking substantial changes to how licensed operators can promote their products.

The reform agenda has instead concentrated heavily on television and radio coverage, particularly the exposure of audiences to sports betting ads. Central to negotiations has been the introduction of stricter broadcasting restrictions and a proposed blackout around live sports broadcasts.

Labor will limit when gambling ads can appear on television and radio, capped at three per hour between 6am and 8pm. Yet anxieties remain over online advertising liabilities that have not been corrected by Labor, in which critics state the government has implemented soft rules on online campaigns for gambling.

Online restrictions under discussion include stronger requirements around audience targeting, mechanisms allowing consumers to opt out of receiving gambling advertising, and clearer age controls. Campaigns would also be expected to prominently display 18+ warnings and ensure that gambling promotions are not deliberately directed towards minors.

Prime Minister Anthony Albanese has come under heavy criticism for his failures and inactions to carry out comprehensive reforms on gambling advertising, a manifesto pledge of his first generational election victory in 2022.

Meta holds ground

The issue remains under scrutiny, but proposals appear more focused on how licensed campaigns are targeted and displayed, rather than resolving ACMA’s enforcement problem against offshore operators using multinational platforms.

Canberra is preparing tighter controls over how licensed bookmakers communicate with consumers, while the enforcement gap surrounding ads for prohibited offshore casinos remains open.

Meta maintains that it takes action against fraudulent advertising and says it has disabled advertising accounts connected to the impersonation of Australian casino brands. The technology giant stated it removed more than 159 million scam ads globally during 2025 and continues to investigate accounts associated with illegal activity.

Nevertheless, Australian campaigners argue that Meta’s sophisticated advertising infrastructure demonstrates it has the technical capacity to identify and restrict illegal gambling promotions.

Gambling Policy Hub director Lauren Levin pointed to Meta’s ability to filter prohibited gambling advertising in jurisdictions including Ireland and Indonesia, questioning why similar protections have not been effectively deployed for Australian consumers.

The controversy therefore adds another complication to the Albanese government’s increasingly contentious review of gambling advertising.

On the clock

For Canberra, the issue now extends beyond the debate over how advertising of licensed gambling operators should be permitted across television, radio and digital media.

Policymakers must also determine whether Australia’s laws can effectively police multinational technology platforms being used by offshore operators that sit entirely outside the regulated gambling market.

The focus returns to the Labor government as August and September are viewed as the key months to settle reforms to be passed by Parliament to be included in the Gambling Act.

Unless the loophole is addressed, Australia risks creating an uneven framework in which licensed operators face tougher restrictions on sports broadcasts, digital targeting, opt-outs and 18+ messaging, while illegal offshore casinos retain a pathway to Australian consumers through the world’s largest social-media platforms.

For ACMA, the dispute exposes a fundamental weakness of legislation drafted before today’s targeted advertising ecosystem: regulating where an audience is located is increasingly ineffective when digital platforms can target individual Australian consumers regardless of where their wider global audience resides.

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