Key Moments:
- Internal Meta materials reportedly linked up to 10% of annual revenue, or $16 billion, to high-risk or banned advertising products.
- Regulators and courts across the United States, Brazil, Malaysia, India, and Romania have increased legal and enforcement actions targeting illegal gambling ads.
- Meta asserts it has reduced user reports of scam ads by 58% in the past 18 months and removed over 134 million pieces of scam content in 2025.
Internal Findings Suggest Extensive Exposure
Meta is currently at the center of global controversy as reports indicate a significant portion of its advertising revenue may be tied to scams and illegal gambling. Materials reviewed by Reuters reveal that internal estimates from Meta assessed up to 10% of its annual income – around $16 billion – could be associated with higher-risk or prohibited ad content.
According to the same reports, internal discussions detailed the scale of this activity, with so-called “higher-risk” schemes reaching audiences billions of times per day. An additional slide deck from late 2024 calculated about $7 billion in annualized earnings connected to these ads. Meta’s internal documents described a balancing act: while aggressive action against scams could reduce immediate ad revenue, keeping such ads visible carried the certain, though manageable, risk of regulatory penalties, estimated internally at around $1 billion.
While Meta characterizes these assessments as exploratory, the company has stated it is “aggressively” fighting fraudulent activity. Meta claims a 58% reduction in user scam ad reports over the last 18 months and reports removing more than 134 million scam ads and posts in 2025.
Worldwide Regulatory and Judicial Crackdown
Lawmakers and regulators globally are moving to hold Meta accountable for illicit advertising practices, tightening oversight and enforcement. Recent judicial decisions in the United States allowed lawsuits against Meta, Google, and Apple concerning casino-style gaming apps, dismissing their Section 230 defense by noting the platforms’ involvement with payments and promotion.
The Brazilian government granted Meta 48 hours to take down ads from unauthorized betting operators. Under new legal requirements, online platforms face direct responsibility for any illegal paid content.
In Malaysia, official figures cite 168,774 takedown requests, with 120,000 relating to illegal gambling content; thousands of these posts reportedly remain accessible. The Malaysian government states that internet scams have led to losses exceeding RM 248 million since 2023. Platforms are now mandated to secure Application Service Provider licenses and comply with a strict “Safe Internet” code.
Enforcement authorities in India have summoned Meta and Google for questioning as part of investigations into illegal betting, money laundering, and unauthorized IPL streaming. Officials assert that prominent ad placements have helped gambling operators scale rapidly on their platforms.
Romania’s gambling regulatory agency (ONJN) sent formal notices to Meta and Google demanding explanations for paid ads from blacklisted operators across Facebook, Instagram, Messenger, and Google Search. The ONJN warned of possible fines and revenue confiscation if violations continue.
Meta’s Position and Current Actions
Meta emphasizes its commitment to maintaining advertising integrity, stating that scam content is unwelcome and under ongoing enforcement. The company provided the following comment to Reuters: “it doesn’t want scam content on its platforms” and said new initiatives have delivered measurable results.
With intensified scrutiny from authorities in countries including the United States, Brazil, Malaysia, India, and Romania, Meta’s ongoing efforts to demonstrate its effectiveness in removing illegal gambling and scam ads continue to draw close attention from stakeholders worldwide.
Overview of Regulatory Actions Against Meta
| Country | Regulatory or Legal Development |
|---|---|
| United States | Federal judge allowed lawsuits against Meta, Google, and Apple over casino-style apps, rejecting Section 230 defense. |
| Brazil | 48-hour deadline issued for removing unauthorized betting ads; platforms now held liable under new framework. |
| Malaysia | 168,774 takedown requests made, with 120,000 related to gambling; platforms must now obtain ASP licenses and follow “Safe Internet” code. |
| India | Meta and Google summoned regarding illegal betting networks, money laundering, and unlicensed IPL streaming. |
| Romania | ONJN issued notices for paid ads from blacklisted operators; threatened fines and revenue confiscation. |
- Author
Daniel Williams
