Companies reportedly ignored customer choices and immediately supplied data to the social media site, leading users’ feeds to load up with gambling adverts.
A recent investigation turned up some troubling material, showing to hundreds of UK gambling platforms that allegedly transferred sensitive customer data with Facebook parent firm Meta without consent.
Such acts might be a serious violation of data protection rules, generating new worries about privacy and ethical marketing practices in the gaming sector.
Violations were very common
According to a recent Guardian story, data gathered by sister publication The Observer revealed that many gambling websites utilize Meta Pixel, a secret monitoring technology that harvests user data such as the pages they visit and the buttons they click.
This technology then transmits the collected data to Meta, which classifies these people as potential gamblers.
Once profiled, users’ Facebook feeds are flooded with advertisements for casinos, betting platforms, and other gambling services. Concerningly, The Observer discovered that numerous websites automatically launched data transfers even before consumers had the opportunity to approve or deny authorization for marketing.
If accurate, such unlicensed data-sharing would be a flagrant breach of data protection regulations.
The Observer reviewed 150 gambling websites, including virtual casinos, bingo platforms, and sports betting sites. Its research revealed that 52 of these submitted data to Meta without user authorization.
Hollywoodbets, Sporting Index, Bwin, and Lottoland are among the most well-known businesses implicated. Neither of these operators has issued an official reaction.
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Unchecked data sharing may exacerbate problem gambling
The Information Commissioner’s Office (ICO) has warned that corporations that break data privacy regulations may face enforcement action, including fines of up to £500,000 ($619,000).
The authorities has initiated an extensive investigation into this situation, pledging to take prompt action against breaching organizations. In addition to financial penalties, businesses that violate restrictions may incur significant public image harm.
Researchers and gambling reform activists have also expressed concern about the potential hazards of this unregulated data sharing.
Professor Heather Wardle, a gambling research specialist at Glasgow University, stated that such predatory marketing may have a disproportionate impact on vulnerable persons, increasing gambling damage.
This type of unrestrained marketing is quite perilous. If you are already struggling with gambling, it is probable that you will continue to gamble.
Professor Heather Wardle, Glasgow University’s gaming research expert.
Following The Observer’s research, some of the firms involved apparently modified their platforms to prohibit automated user data collecting.
Meanwhile, Meta claimed that marketers are responsible for obtaining user consent before providing relevant data.
Critics claim that the corporation should tighten its data gathering practices and rigorously police compliance among its advertising partners.
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