Meta clarifies policy on gambling ads following stakeholder concerns

Lea Hogg August 23, 2024

SiGMA news

Meta clarifies policy on gambling ads following stakeholder concerns

Meta, the parent company of Facebook and Instagram, has issued a clarification regarding its advertising policies for real money gambling. This move came after an initial announcement on 20 August, 2024, which indicated that businesses in India, the Asia-Pacific (APAC) region, and Latin America (LATAM) would be allowed to advertise these products on Meta’s platforms starting 27 August. The announcement sparked significant concern among various stakeholders, prompting Meta to release a more detailed statement.

Focus on gambling ads

The clarification is particularly significant for the gambling industry. Real money gambling ads have always been a contentious issue due to their potential to encourage addictive behaviours and financial losses among consumers. Meta’s initial announcement raised alarms about the possible proliferation of gambling ads in regions with strict regulations against such promotions.

Meta’s decision to adhere to local laws means that gambling ads will not be allowed in countries where gambling is heavily regulated or banned. This approach aims to balance business interests with social responsibility, ensuring that Meta’s platforms do not become conduits for promoting potentially harmful activities in regions where they are not legally permitted.

Initial announcement and subsequent clarification

The initial announcement by Meta suggested a broad relaxation of its advertising policies, allowing businesses to promote alcohol and gambling products across several regions. This led to widespread speculation and concern about the potential impact on public health, consumer behaviour, and industry trends. In response, Meta issued a clarification emphasising its commitment to respecting local laws and regulations.

A Meta spokesperson explained, “When we set business policies for our service, we respect local laws, and therefore certain business messaging or other types of communication are not going to be allowed in certain countries, including India. The referenced communication lacked that precision that is reflected in our formal policies and documents.”

Meta’s advertising policies will therefore continue to align with local regulations, potentially restricting or banning alcohol and gambling ads in regions where such promotions are not permitted.

Industry and public reaction

The clarification has been met with mixed reactions. Industry stakeholders who were initially excited about the potential for expanded advertising opportunities are now reassessing their strategies in light of the reaffirmed restrictions. On the other hand, public health advocates and regulatory bodies have welcomed Meta’s commitment to respecting local laws, viewing it as a necessary step to protect consumers from the risks associated with gambling.

Meta’s clarification on its advertising policies for alcohol and gambling highlights the complex interplay between global business operations and local regulations. By aligning its policies with local laws, Meta aims to navigate the delicate balance between expanding its advertising services and maintaining social responsibility. This move underscores the importance of precision in corporate communications and the need for businesses to remain adaptable to regulatory landscapes.

The company’s commitment to respecting local laws ensures that its platforms remain safe and responsible spaces for users worldwide.