Gambling Firms Accused of Illegally Sharing User Data with Facebook

A recent investigation unearthed some concerning information pointing to dozens of UK gambling platforms that reportedly shared sensitive user data with Facebook parent company Meta without permission. Such actions could constitute a significant violation of data protection laws, raising mounting concerns about privacy and ethical marketing tactics within the gambling industry.

Violations Were Surprisingly Common

According to a recent report by The Guardian, data collected by sister paper The Observer uncovered many gambling websites abusing Meta Pixel, a hidden tracking tool that extracts user data such as the pages they view and the buttons they click. This tool then sends the collected information to Meta, which profiles these individuals as likely gamblers.

Once profiled, users’ Facebook feeds get bombarded with ads for casinos, betting platforms, and other gambling services. Concerningly, The Observer found out that many websites automatically initiated the data transfer even before users got the chance to agree or decline consent for marketing. If true, such unlicensed data-sharing would constitute a gross violation of data protection laws.

The Observer tested 150 gambling websites, including virtual casinos, bingo platforms, and sports betting websites. Its findings uncovered that 52 of these transferred data to Meta without obtaining user consent. Some high-profile implicated brands include Hollywoodbets, Sporting Index, Bwin, and Lottoland. None of these operators have provided an official response.

Unchecked Data Sharing Could Exacerbate Problem Gambling

The Information Commissioner’s Office (ICO) has warned that companies in breach of data protection laws could face enforcement action, including fines of up to £500,000 ($619,000). The authority has launched a wide-ranging review into this matter, promising to take swift action against violating entities. In addition to financial penalties, operators flaunting regulations could suffer substantial public image damage.

Researchers and gambling reform advocates have also raised alarm over the possible risks of this unchecked data sharing. Professor Heather Wardle, a specialist in gambling research at Glasgow University, noted that such predatory marketing could have a disproportionate effect on vulnerable individuals, leading to an increase in gambling harm.

This kind of untamed marketing is hugely risky. If you are already experiencing difficulties from gambling, it is likely to make you gamble more.

Professor Heather Wardle, Glasgow University gambling research specialist

Following The Observer’s investigation, several implicated companies have reportedly updated their platforms to prevent automatic user data collection. Meanwhile, Meta stated that it is up to advertisers to obtain user consent before sending relevant data. However, critics argue that the company must tighten its data collection policies and actively enforce compliance from its advertising partners.