A Reuters investigation has revealed that Meta may have earned billions in revenue from ads tied to fraudulent schemes and unlicensed gambling promotions. Internal company documents from 2021 to 2025 reportedly estimated that up to 10% of Meta’s total revenue approximately $16 billion came from “higher-risk” ad categories. While Meta disputes these figures, the disclosures have triggered growing scrutiny from governments worldwide.
In the United States, a federal judge in California has allowed lawsuits against Meta, Google, and Apple to proceed, focusing on their role in distributing and processing payments for casino-style apps. In Brazil, authorities ordered Meta to remove all unlicensed betting ads within 48 hours, citing a new framework that mandates compliance from digital platforms. Malaysia has also tightened regulations, linking social platform accountability to user safety, after identifying over 120,000 illegal gambling posts.
India’s Enforcement Directorate has summoned Meta in connection with investigations into illegal betting networks and money laundering activities, while Romania’s regulator issued formal warnings regarding blacklisted operators advertising on Meta’s platforms.
Meta has defended its practices, emphasizing its investments in ad integrity and fraud prevention. The company reports removing over 134 million scam-related posts this year and claims a 58% decline in user-reported scams. However, regulators argue that enforcement remains too slow and that profits from illegal ads continue to flow.
The case underscores a critical shift in digital governance one where ad transparency, platform responsibility, and compliance with gambling regulations are no longer optional but essential to global trust.
