Meta Tightens Betting Ad Standards on Facebook, Instagram

• Betting companies advertising on the social media platforms must now fill out more paperwork, show state gaming licenses
• New standards apply to all ads pertaining to any real money games

Meta Platforms is tightening its standards for online betting advertisements that run on Facebook and Instagram, which are two of the world’s biggest social media sites.

The California-based company unveiled new rules for advertisers pitching real-money games on its social media platforms to crack down on ads run by black market and offshore operators. Under the company’s new guidelines, advertisers will be required to fill out more paperwork, perhaps show gaming licenses, and prove they’re in compliance in the jurisdictions in which the ads will run.

For example, if an operator such as DraftKings or FanDuel wants to run ads targeting bettors in Ohio, the companies would need to prove to Meta that their licenses are valid in that state and that they’re in compliance with the state’s regulations.

“Meta defines online gambling and games as any product or service where anything of monetary value is included as part of a method of entry and prize. Monetary value includes but is not limited to cash or digital currencies like Bitcoin,” according to the company.

Why Meta Rules Matter to the Industry

Meta’s stricter standards on betting ads are meaningful to the gaming industry for a simple reason: Facebook and Instagram are two of the largest destinations for online advertising. By some estimates, outside of China, Google parent Alphabet, Meta, and Amazon control nearly 90% of the global internet advertising market.

The sports wagering industry has relied heavily on television advertising, but social media platforms are vital to operators’ quest to lure bettors from younger demographics. The good news is that Meta isn’t making things overly burdensome on the gaming industry.

“To run ads that promote online gambling or games, advertisers will need to request authorization from Meta through the Authorizations and Verifications tab in Meta Business Suite. Authorization is granted to specific ad account IDs,” according to the company.”Note that advertisers only need to obtain a single authorization to be able to target online gambling and gaming ads globally with the exception of unsupported markets.”

In addition to free-to-play games being exempt from Meta’s new protocols, so are land-based casinos, prize promotions requiring a purchase, and state lotteries.

Could WhatsApp Be Next?

To boost ad revenue, Meta announced last month it will allow businesses to run ads on WhatsApp, its popular messaging service. However, the social media giant didn’t mention WhatsApp in connection with the new rules for betting ads.

It’s possible gaming companies will find WhatsApp to be a desirable advertising venue because it has three billion global monthly users, 100 million of whom reside in the US.