Instagram owner Meta faces legal action over its alleged failure to act against illegal gambling adverts on its site
Instagram’s parent company, Meta, is facing a lawsuit brought forward by Dutch gambling trade association VNLOK. The legal action accuses the tech giant of not doing enough to stop illegal gambling ads from being shown on its platforms, including some featuring the images of well known sporting figures like Ronaldo and Van Dijk in deepfakes endorsing the products.
An investigation by Dutch paper De Telegraaf revealed that of the over 700,000 fraudulent gambling ads it reviewed, only 5% were removed by the platform. These ads often feature trusted logos like Visa and Mastercard tricking users into thinking they can safely deposit funds.
SlotVerse, a gambling operator which is unlicensed in the Netherlands, was repeatedly shown to users on the platform, and even appeared in a list of accepted advertisements in Meta Ads Library, Meta’s advertising database.
It’s worth noting the leaked internal documents showed Meta planned to generate $16bn, or 10% of its 2024 revenues, from advertising online scams, banned items, and illegal online gambling. It’s estimated its platforms publish around 15 billion “higher risk” ads every day, and even make more money from these as they charge a premium for the risk.
Equal markets
VNLOK estimates that over €1bn euros is now circulated from illegal online gambling every year, making the illegal market roughly the same size as the legal market in the Netherlands.
“This is not only an economic problem, but above all a major risk to consumer protection. Illegal providers do not adhere to rules regarding addiction prevention and actively target vulnerable groups such as minors and problem gamblers,” says VNLOK Chairman Björn Fuchs.
This situation has escalated, according to VNLOK, as Meta refuses to engage in dialogue with the trade association. “That is like trying to mop up water with the tap still running,” says VNLOK.
“Illegal providers keep returning with new advertisements. The Gaming Authority submits thousands of reports of illegal gambling advertisements to Meta every month. Large online platforms are legally obliged to continue investing in the detection, monitoring, and restriction of illegal gambling advertisements targeting Dutch consumers.”
“As long as Meta fails to meet its legal obligation, the illegal market will continue to grow and vulnerable players will be exposed to significant risks. That is why we are now taking legal action as well as taking the matter to Brussels.”
