Investigation shows gambling sites covertly sharing user data with Facebook

FMT

An investigation of 150 gambling sites has revealed significant flouting of data protection regulations with visitors to the platforms covertly tracked and then the information is sent to Meta.

The parent company of Facebook is using the data to profile users as gamblers and then sending a flow of ads for casino and betting sites their way. 

As detailed by The Observer, the users only visited the gambling sites and did not place bets, or agree to data sharing, but subsequently their Facebook feeds were flooded with the ads. 

This has been enabled by a hidden tracking tool embedded within scores of British gambling websites which gathers data from visitors, including pages viewed and buttons clicked, and then the collated data is shared with the social media giant.

Data protection laws stipulate this practice can only occur with explicit permission granted by site users, but the newspaper probe has uncovered the apparent mass breaches of the regulations. 

Various sites were implicated, from sports betting sites to online casinos and virtual bingo games.

Of the 150 sites under the spotlight, 52 shared data automatically without consent, using the Meta Pixel tracking tool. These include prominent brands such as Bwin, Sporting Index and Hollywoodbets; the shirt sponsor of Premier League club, Brentford.

The tests showed this activity happened instantly, once the web pages had loaded, and not dependent on the user opting to agree or decline marketing consent. In the following days, the linked Facebook feed was full of gambling ads, indicating that Facebook had profiled the user as someone interested or involved in gambling activity.

The Information Commissioner's Office (ICO) is clear that consent for marketing activities must be “unambiguous and affirmative” and further states that pre-filled boxes or the lack of an opt-out option is insufficient.

Despite this guidance, the sites are doing the opposite. 

There are also serious questions to be asked of Meta, the owner of Facebook, Instagram and WhatsApp, with the company appearing to profit from data funneled to it unlawfully. 

Meta can then sell its ad space to companies seeking to target users categorised as gamblers, as detailed above by The Observer investigation. 

Veteran politician Iain Duncan Smith, the Tory chairperson of the all-party parliamentary group on gambling reform, expressed concern at this latest development, calling for an “immediate intervention”. 

The former Conservative leader said: “The use of tracking tools such as Meta Pixel without explicit consent seems wholly in breach of the law and should be immediately stopped.

“The gambling industry’s marketing practices are now out of control, and our regulatory structure and codes of practice are repeatedly shown to be inadequate. This cannot go on.”

Against this same backdrop, a High Court judge ruled last month that Sky Betting & Gaming (SBG) breached British data protection regulations after a problem gambler filed a lawsuit against the company.

The individual pursued Bonne Terre Ltd, which trades as SBG, with the judge returning his verdict in favour of the claimant, ruling that the company had no lawful basis to gather personal data on the individual using cookies, with a further reprimand for targeting the online gambler for direct marketing purposes. 

The flood of Facebook ads spread after the data profiling included content from heavyweight brands such as Ladbrokes, Sky Bet, BetVictor, Tombola and bet365.  The ad enticed gamblers with free bets and new player incentives with terms such as ‘200% bonus’, ‘Gold Blitz’ and “win up to 5,000 times your bet”. 

Professor Heather Wardle, a gambling research expert at Glasgow University, warned “This kind of untamed marketing is hugely risky. If you are already experiencing difficulties from gambling, it is likely to make you gamble more.”

To learn more, visit our responsible gambling page which also offers resources and advice on where to seek help if needed.