Gambling Ads Lead to Fine in Italy for Facebook Owner Meta

Article by : Erik Gibbs Jan 23, 2024

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The Italian Communications Regulatory Authority (AGCOM) has imposed a €5.85 million (US$6.3 million) fine on Meta, the parent company of Facebook and Instagram.

This penalty is a consequence of Meta’s infringement of Italy’s regulations on gambling advertising. The substantial fine reflects a significant step taken by the country in enforcing its laws and regulatory measures against industry leaders.

AGCOM identified multiple instances of betting and gaming promotions across 13 Facebook profiles and five Instagram accounts, totaling 18 violations.

Due to Meta’s ownership of both platforms, the regulatory authority imposed a fine on the company. The investigation uncovered 32 visual posts, encompassing videos and images, promoting betting and gaming.

Meta, offering diverse advertising services beyond content display, was deemed responsible for the violations despite its knowledge of the illegality of such ads, as it approved them.

AGCOM emphasized the company’s awareness of the legal issues associated with betting and gambling advertisements. A total of 18 accounts were flagged, with AGCOM attributing responsibility to Meta for five of them.

Despite Meta’s efforts to halt advertising and rectify the issue after AGCOM identified problematic ads, the company still faced the fine. In response to the regulator’s flags, Meta took the additional step of blocking 11 accounts.

Alongside the penalty, Meta received an official notice and a take-down order for all the ads under scrutiny.

Italy maintains stringent regulations on problem gambling and gambling addiction. In July 2018, the state introduced the Dignity Decree, aiming to address and prevent issues related to gambling, and Meta has now been found in violation of this decree.

The Dignity Decree explicitly prohibits all forms of betting and gambling advertisements on social media and other platforms, including sports team jerseys, stadiums and various media outlets.

Meta is not the sole company facing fines for betting and gaming ads, as both YouTube and Twitch have recently received penalties. YouTube was fined €2.5 million (US$2.71 million), while Twitch had to pay €900,000 (US$977,000) for similar violations.

The European Gaming and Betting Association (EGBA) holds a differing stance on Italy’s strict regulations, expressing concerns that such measures may drive companies towards the rapidly growing offshore market.