A new investigation has revealed that UK gambling companies are secretly sharing users’ data with Facebook’s parent company, Meta, without permission. This could be a serious breach of data protection laws.
Many gambling websites embed the hidden tracking tool, Meta Pixel. This tool collects user activity, including the pages they visit and the buttons they click. It then shares this data with Meta, which profiles users as gamblers and targets them with casino and betting ads.
By law, companies must get explicit consent before using or sharing personal data for marketing. However, as reported in The Guardian recently, testing by the Observer on 150 gambling websites found that many ignored these rules.
The investigation found that 52 gambling websites, including prominent names like Hollywoodbets, Sporting Index, Bwin, Lottoland, 10Bet and Bet442, automatically sent data to Meta as soon as their pages loaded. This happened before users had a chance to accept or reject tracking.
The result? Facebook flooded users with casino and gambling ads. Following visits to multiple gambling sites, a reporter received an avalanche of advertisements from 49 different brands. This means that not just websites shared their data unlawfully, but others, too.
Even companies that followed data rules, such as Ladbrokes, Sky Bet, BetVictor, Tombola and Bet365, unknowingly benefited from the profiling. This shows that the gambling industry still has issues with how it handles personal data.
Politicians and experts have condemned the practice. Former Conservative leader Iain Duncan Smith called for an “immediate intervention.”
He warned that gambling companies’ marketing tactics are “out of control.” He said that the current regulations are “failing to protect users.”
Wolfie Christl, a data privacy expert, said, “Meta is complicit and must be held accountable.” He accused the company of ignoring illegal data-sharing practices while continuing to profit from them.
The Betting and Gaming Council (BGC) pointed to the fact that advertising must comply with rigid guidelines. They added that previous government research didn’t prove a link between exposure to advertising and developing a gambling problem.
This isn’t an isolated incident. Gambling firms have mishandled user data before. In September, the Information Commissioner’s Office (ICO) reprimanded Sky Betting & Gaming for using advertising cookies without permission. The company blamed a technical error but has since changed its approach.
According to a High Court ruling in England and Wales, Sky Betting and Gaming, owned by Flutter Entertainment, was also recently found guilty of unlawful data use. The case was brought by a customer who complained that Sky Betting and Gaming sent him targeted marketing messages between 2017 and 2019, despite being clearly addicted to gambling.
The UK Gambling Commission (UKGC) recently introduced new rules to stop companies from cross-selling different gambling products to the same customers. However, no regulation prevents firms from using Meta’s profiling to attract new users. The UKGC also recently launched a consultation on proposed new rules aimed at making gambling in Britain safer and fairer, as recommended by the White Paper of the Gambling Act Review.
The ICO has warned that companies must use tracking tools lawfully and transparently. The ICO said they would take further action with fines of up to £500,000. A spokesperson told the Observer, “Too often, there is a lack of accountability for how these tools collect and use people’s personal information, with poor transparency and deceptive design.”
Gambling firms react
After being contacted by the Observer, several gambling companies changed their websites. Some disabled Meta Pixel entirely, while others updated their tracking settings to prevent automatic data sharing.
Bwin, who shared data without consent, admitted to an ‘internal error’ and vowed to fix the issue. But, despite criticism, some remained silent. Hollywoodbets, who sponsor Premier League football club Brentford, say it complied with regulatory requirements but did not comment further. Bet365, Lottoland declined to comment, and Sporting Index and 10Bet didn’t respond to the Observer’s requests.
Experts fear that fierce marketing tactics could make gambling addiction worse. Professor Heather Wardle, a gambling researcher at Glasgow University, described this unchecked advertising as “hugely risky.”
Meta did not comment on the Observer’s findings and says businesses using its tools must gain user consent. However, critics argue that the company does little to enforce these rules. Mounting pressure may force regulators to take more decisive action. For now, the scandal has exposed yet another example of how personal data is being misused in the digital age.
The public and lawmakers are now closely observing developments to see if authorities will hold Meta and gambling firms accountable. If authorities don’t enforce stricter regulations, similar data misuse cases may go unchecked. It is crucial for regulatory bodies to take swift action against any breaches.
While the digital age has brought convenience for gamblers, increased advancements in technology and clever ways to exploit online security means that all safeguards to protect user privacy must be more potent. Holding companies accountable reinforces public trust in the platforms and the gambling industry. Continuous exploitation of users and their data undermines the integrity of the entire industry.
You can find more information in the full article from the Guardian.
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