Reuters: Meta Made Billions of Dollars From Illegal Gambling Ads and Scams

Reuters: Meta Made Billions of Dollars From Illegal Gambling Ads and Scams

According to a Reuters investigation, Facebook parent company Meta has profited billions of dollars from companies that aim to swindle customers worldwide, primarily in China.

According to the London-based international news agency, Meta's 2024 advertising revenue from Chinese businesses topped $18 billion, or more than 10% of the Facebook group's worldwide revenue.

According to Meta's own calculations, advertisements for frauds, unlawful gambling, pornography, and other prohibited items accounted for roughly 19% of that total, or over $3 billion.

Reuters obtained internal documents from Meta and reported on the revenue.

In addition to Facebook, Meta's social media accounts—which include Instagram, WhatsApp, Messenger, Threads, and Workplace—are blocked from Chinese users.

Customers Are Hurt

According to Reuters, the Meta papers caused consumers to suffer financial losses as a result of investing in fraudulent companies, buying fake health supplements, and playing on unregulated websites with stacked odds.

"We need to make significant investments to reduce growing harm,” Meta staffers warned in April 2024.

In response, Meta established an anti-fraud squad to keep an eye on Chinese marketing. As a result, Meta's ad revenue from the second-most populous country in the world fell from 19% to 9%.

Nevertheless, Meta revealed last month that it makes roughly $7 billion annually from ads it deems to be "high risk." Advertisements for illicit gambling, scams, and other prohibited goods are included in the group. The People's Republic is identified by Meta as the leading "Scam Exporting Nation" and the main origin of ad fraud.

Because of how common scam advertisements are in China, Meta reports that during national holidays like the October Golden Week, when most employees are given a week of paid time off, there is a discernible decrease in fraudulent marketing.

"The Chinese government does not interfere when violations target overseas audiences,” a London consultancy called Propellerfish reported in a Meta-commissioned study about scam ads.

According to the review's findings, so-called "ad optimization specialists" have been able to use flaws in Meta's security framework to block false advertisements and schemes.

Gambling in China

With the exception of Macau, a Special Administrative Region with the biggest casino market in the world, gambling in casinos and online is prohibited throughout China.

Chinese consumers have long been the focus of illegal online casinos operating abroad; hotspots for these activities include the Philippines, Malta, Curacao, the Isle of Man, Anjouan, Gibraltar, and Ukraine.

However, the Philippines' online gaming business was just shut down. Philippine President Ferdinand "Bongbong" Marcos Jr. ordered the Philippines Amusement and Gaming Corporation (PAGCOR) to revoke all licenses for the Philippines Offshore Gaming Operator (POGO) in response to a request from Beijing.