Meta Platforms Inc. is embroiled in global criticism amid accusations that a significant portion of its advertising revenue derives from scams and illegal gambling promotions. Internal documents leaked to Reuters reveal that approximately 10% of Meta’s annual revenue—equating to around $16 billion—may be linked to high-risk or prohibited products. Meta has contested these figures, emphasizing that the internal evaluations were merely exploratory and intended to refine safety protocols, not to endorse misuse. Nonetheless, these disclosures emerge as a growing number of regulators and legal systems worldwide intensify their clampdown on illegal online gambling and deceptive advertising practices.
A Deep Dive into Internal Reports and Strategic Conundrums
The Reuters investigation, drawing on internal documents from Meta spanning 2021 to 2025, presents an unsettling scenario: advertisements labeled as “higher-risk” scams are purportedly reaching users billions of times each day, generating a vast number of ad views. Another document from late 2024 suggests that approximately $7 billion of annual revenue could be attributed to these high-risk advertisements. Furthermore, internal presentations highlighted a significant strategic dilemma—reducing scam content might lead to a decline in short-term ad revenue, yet maintaining it could result in inevitable regulatory fines, estimated internally by Meta to potentially reach $1 billion, but considered manageable.
Meta has countered these depictions, asserting its commitment to aggressively combat fraudulent and scam activities. The tech giant claims to have decreased user reports of scam ads by 58% over the last year and a half and eliminated over 134 million pieces of scam-related content in 2025 alone.
Global Reaction: Regulatory and Judicial Measures Intensify
The pressure on Meta is heightening across various continents, as regulatory bodies increasingly frame advertisement accountability as a commercial duty rather than a mere facet of content moderation. In the United States, a California federal judge has permitted lawsuits against Meta, Google, and Apple to advance concerning casino-style gaming apps. The court dismissed the companies’ Section 230 defense, declaring the platforms are more than just “publishers” when facilitating payments or promoting gambling apps.
In Brazil, authorities have mandated that Meta remove advertisements from unauthorized betting operators within 48 hours, highlighting that platforms are now accountable for illegal paid content under a newly enacted legal framework.
In Malaysia, the government has criticized Meta for its slow response. Out of 168,774 takedown requests, approximately 120,000 pertained to illegal gambling content, yet numerous flagged posts remain active. Officials report that online scams have cost users over RM 248 million since 2023. New legislation now obligates social media platforms to possess Application Service Provider licenses and comply with a rigorous “Safe Internet” code of conduct.
Simultaneously, Meta, alongside Google, has been summoned by India’s Enforcement Directorate in an investigation into illegal betting networks, money laundering, and unlicensed IPL streaming. Authorities assert that premium ad spaces significantly boosted the growth of gambling apps.
In Romania, the national gambling regulator, ONJN, has issued warnings to Meta and Google regarding paid advertisements for blacklisted operators on platforms such as Facebook, Instagram, Messenger, and Google Search, underlining potential fines and revenue seizures.
Meta’s Strategic Response
Meta asserts that it is making substantial investments in user safety and the integrity of its advertising ecosystem. The company assured Reuters that it “does not want scam content on its platforms” and mentioned that new enforcement tools have already shown tangible improvements.
Nonetheless, as regulators from California to Kuala Lumpur escalate their actions, the onus on Meta to demonstrate that its systems can effectively deter illegal gambling and scam advertisements from its platforms continues to increase. The situation underscores a broader industry shift, where tech giants are now being held accountable not just for the content they enable, but for the commercial implications and ethical responsibilities tied to their advertising operations.
While Meta defends its efforts, critics argue that more aggressive measures are necessary to ensure user protection and regulatory compliance. They highlight that the financial gains achieved through potentially harmful advertisements cannot be justified against the backdrop of potential user harm and legal ramifications. In contrast, some industry analysts suggest that the challenges Meta faces are symptomatic of a broader issue within digital advertising, where the line between acceptable and illicit content often blurs.
This debate continues as stakeholders across sectors call for clearer guidelines and stronger enforcement to safeguard users and uphold the integrity of digital advertising platforms globally.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
4.8/5Golden Play Casino
100 free spins
