Meta’s Revenue Tied to High-Risk Ads Including Gambling Faces Scrutiny
Extent of High-Risk Advertising on Meta Platforms
According to an investigative report by Reuters, approximately 10% of Meta’s total revenue derives from advertising considered high-risk. This category not only encompasses gambling promotions but also includes advertisements linked to various fraudulent schemes. Meta, the parent company of popular platforms such as Facebook, Instagram, WhatsApp, and Messenger, reportedly sees billions of daily views for these ads.
Challenges in Moderating Gambling and Scam Advertisements
Documents reviewed by Reuters, covering the time frame from 2021 to 2025, suggest that potentially risky advertisements could be driving up to $7 billion in revenue. The report indicates Meta may be cautious about aggressively targeting scam-related ads, as such actions could negatively impact its financial performance. Moreover, many suspect ads with a high probability of fraud—about 95%—are not automatically flagged by Meta’s detection systems.
Meta’s Response to Claims About Its Advertising Policies
In response to the report, Meta’s spokesperson Andy Stone clarified that the documents were misrepresented. He emphasized that the assessment was part of an initial review intended to enhance the platform’s defenses against scams and fraudulent content. Stone reinforced Meta’s commitment to combating fraud, stating that stopping such content is in the best interest of users, legitimate advertisers, and the company itself.
Plans for Gradual Reduction of Revenue from Risky Ads
Further internal evaluations highlighted by Reuters reveal that scams are more prevalent on Meta’s channels compared to other platforms like Google. While Meta acknowledges the need to cut down on revenue from illicit activities, including gambling, fake health products, and sexual services, the company is cautious about making immediate drastic changes to this income stream. Meta is therefore aiming for a gradual reduction, balancing integrity efforts with business considerations.
