29 Sep

Gambling News

VNLOK summons Meta to court about illicit gambling advertisements

Due to the "large-scale dissemination of illegal gambling advertisements via Facebook and Instagram," VNLOK has called Meta to court, adding to the mounting pressure on the social media firm surrounding illicit gambling advertising on their platforms.

The action comes after the Dutch gaming trade organization complained to the European Commission in June about illicit gambling advertisements that appeared on its social media platforms.

It also coincides with the Dutch House of Representatives' upcoming vote on a motion to give the Dutch gaming authority, Kansspelautoriteit (KSA), the authority to impose fines on online platforms for failing to take adequate action against illicit gambling advertisements.

VNLOK requests that the court rule that Meta is "not complying with the obligations under the European Digital Services Act (DSA)" and mandate that the business "take measures to better prevent illegal gambling advertisements targeting Dutch consumers."

The case, according to the trade association, is "not directed against social media as such, but against the facilitation of illegal offerings."

"We have repeatedly pointed out the scale of the problem to Meta and asked them to cooperate structurally in finding a solution," stated Björn Fuchs, Chair of VNLOK. That hasn't produced enough outcomes. As a result, we are now bringing the case before the Dutch courts.

Simultaneously, we observe that the House of Representatives is clearly placing platform responsibility on the agenda. It's a crucial indication. Only by utilizing the infrastructure of major online platforms can illegal gaming companies reach Dutch consumers.

Meta and illicit gambling advertisements in the Netherlands
Picture: Shutterstock/Yasonya
Only 11% of the illicit advertisements were eliminated by Meta in May and 15% in June, according to VNLOK's findings, which reveal that more than 90% of the gambling ads analyzed on Facebook came from illicit gambling websites. 

The trade organization is urging Meta to "act more proactively and efficiently" against the advertising before they are placed because it claims that retroactive removal of these ads frequently occurs too late because they only remain online for a little amount of time.

The Bikkers et al. motion, which is up for vote later today, calls for the KSA to "be granted the power to impose a fine or an order subject to a penalty payment" because online platforms like Meta "themselves in violation when illegal gambling advertisements remain visible after repeated reports."

Instead of waiting for new laws to be passed, VNLOK wants the KSA to take "tougher action within existing legal possibilities against parties that facilitate illegal online gambling."

"The Gaming Authority already files many reports with platforms," Fuchs continued. It's time to move forward, though, given how many illicit ads still show up online in spite of those reports. 

"Parties involved in providing illegal offerings to Dutch customers must be held more firmly accountable for their actions by the regulator. The regulator already has those legal alternatives, thus no legislative amendment is required for this.

Not merely a meta issue
"We are currently suing Meta, but the issue is more widespread."

Björn Fuchs, VNLOK Chair
According to VNLOK, other platforms that assist illicit suppliers in reaching Dutch consumers ought to be held responsible as well.

Fuchs stated: "We are currently suing Meta, but the issue is more widespread. When an illicit provider is eliminated through one platform, it reappears through another. Then we play catch-up all the time. Every link in this chain needs to accept accountability.

"Politicians can set clear rules, the Gaming Authority can enforce them, and platforms can deploy their systems to stop illegal offerings," he went on. Now the three need to get together. 

"We are bringing Meta's accountability before the court because we can't wait any longer." We also anticipate that other platforms and the regulator will assume accountability.