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

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

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

According to Meta's own calculations, adverts for frauds, illicit gambling, pornography, and other prohibited content accounted for almost $3 billion, or roughly 19% of that total.

After receiving internal documents from Meta, Reuters published an article on the revenue.

Chinese users are not allowed to use Meta's social media platforms, which include Facebook, Instagram, WhatsApp, Messenger, Threads, and Workplace.

Customers Affected

According to Reuters, the Meta papers caused people to lose money by investing in fake companies, buying phony health products, and gambling on unregulated websites where the odds were stacked against the player.

"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 nation in the world fell from 19% to 9%.

Nevertheless, Meta revealed last month that it makes roughly $7 billion annually from "high risk" ads. The category contains advertisements for illicit gaming, scams, and other prohibited goods. According to Meta, the People's Republic is the biggest source of ad fraud and its top "Scam Exporting Nation."

China has such a strong influence on scam advertisements that, according to Meta, there is a discernible decrease in fraudulent marketing during national holidays like October Golden Week, when the majority of workers are granted a week of paid time off.

"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 take advantage of flaws in Meta's security measures to launch fake advertisements and schemes.

Gambling in China

With the exception of Macau, a Special Administrative Region that has the largest casino market in the world, both online and casino gambling are prohibited in China.

The Philippines, Malta, Curacao, the Isle of Man, Anjouan, Gibraltar, and Ukraine are hotspots for illegal online casinos that have long targeted Chinese clients.

However, the online gaming business in the Philippines was just shut down. Ferdinand "Bongbong" Marcos Jr., the president of the Philippines, ordered the Philippines Amusement and Gaming Corporation (PAGCOR) to revoke all licenses for Philippines Offshore Gaming Operators (POGOs) at Beijing's request.