ARTICLE
23 November 2022

Facebook Sets Restrictions On Online Gambling Ads

KM
Klein Moynihan Turco LLP
Contributor
Klein Moynihan Turco LLP (KMT) maintains an extensive practice, with an international client base, in the rapidly developing fields of Internet, telemarketing and mobile marketing law, sweepstakes and promotions law, gambling, fantasy sports and gaming law, data and consumer privacy law, intellectual property law and general corporate law.
Facebook has updated and is now enforcing their gambling and gaming service marketing policy.
United States Media, Telecoms, IT, Entertainment
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Facebook has updated and is now enforcing their gambling and gaming service marketing policy. In order to feature ads that promote online gambling and gaming, advertisers now need to request prior written permission from Meta to do so. The request must include evidence that the subject gambling and/or gaming activities are duly licensed by regulators or otherwise lawful in the geographic locations or territories that they target. Not surprisingly, the stated policy does not allow companies to direct online gambling and gaming ads at anyone under 18 years of age. Companies looking to, or continuing to, advertise these services on Facebook will certainly need the help of an experienced Internet marketing attorney to comply with the Facebook gambling policy restrictions.

What Activities Does the Facebook Gambling Policy Cover?

Facebook's stated policy applies to all forms of online gambling. For example, the restrictions indicate that companies must direct written requests to Meta to run advertising of "common types of gambling" on Facebook, such as "betting, lotteries, raffles, casino games, fantasy sports, bingo, poker, skill game tournaments and sweepstakes [emphasis added]." The Facebook gambling policy further outlines the types of games that come within its purview: "games where anything of monetary value is included as part of a method of entry and anything of monetary value is included as part of the prize . . . ." In addition, the restrictions cover games that require purchases to continue playing, or which give a participant an advantage to win.

Why Sweepstakes Promotions Should Not Violate Facebook's Gambling Policy

If you set up a sweepstakes marketing campaign correctly, your sweepstakes promotion will not violate Facebook's gambling restrictions. In fact, for a sweepstakes promotion to be lawful, would-be participants must not be required to "pay to play," and if there is a monetary fee required for entry, there must also be a free, alternative means of entry ("AMOE"). The Facebook online gambling policy lists promotions that do NOT come within the purview of the governing policy, including games that are entirely free-to-play. As a footnote of sorts, the policy explains that advertisers must also comply with applicable state and federal laws when running such online gambling ads.

Promotions that do not need Prior Permission under Facebook's Gambling Restrictions

Businesses that run advertisements promoting a physical, actual-money gambling activity or entity, such as a "brick and mortar" casino, would not come within the ambit of Facebook's gambling restrictions. Significantly, ads that promote entertainment events at physical casinos, or the streaming of offline poker tournaments also do not require prior approval. Readers should note that businesses must be clear about what the Facebook gambling policy covers and what it does not, as well as how to comply.

How to Safely Comply with Facebook's Gambling Policy

Companies seeking to advertise online gambling and gaming services on Facebook must request permission by filling out a form provided on the site. The form instructions indicate, among other things, that applicants must disclose the URLs that they intend to advertise, as well as the geographic territory that will be targeted. If permission is granted, authorization will be limited to those specific URLs and territories, and apply only to the Ad Accounts that are listed in the subject applications.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
23 November 2022

Facebook Sets Restrictions On Online Gambling Ads

United States Media, Telecoms, IT, Entertainment
Contributor
Klein Moynihan Turco LLP (KMT) maintains an extensive practice, with an international client base, in the rapidly developing fields of Internet, telemarketing and mobile marketing law, sweepstakes and promotions law, gambling, fantasy sports and gaming law, data and consumer privacy law, intellectual property law and general corporate law.
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