Conservative Leader Slams 'Out of Control' Betting Industry's Secret Facebook Deal

Paul Riverbank, 2/9/2025The rapid expansion of legal sports betting in America has created an alarming confluence of data privacy violations and addiction risks. Investigation reveals betting companies secretly sharing user data with Meta, potentially violating laws while targeting vulnerable individuals. This digital-age challenge demands immediate regulatory attention and reform.
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The rapid normalization of sports betting across America — now legal in 40 states — has created a perfect storm of accessibility, technology, and addiction risk, while raising serious concerns about how betting companies handle user data and target vulnerable individuals.

Recent investigations have revealed a troubling pattern of gambling companies secretly harvesting user data and sharing it with Meta's Facebook platform without explicit consent — a practice that appears to violate data protection laws. The implications are stark: visitors to betting websites are being profiled and targeted with gambling advertisements, often without their knowledge or permission.

"The gambling industry's marketing practices are now out of control, and our regulatory structure and codes of practice are repeatedly shown to be inadequate," warns Iain Duncan Smith, Conservative chair of the all-party parliamentary group on gambling reform. "This cannot go on."

The human cost of these practices becomes evident through the stories of those caught in gambling's grip. Craig Carton, now a FanDuel responsible gaming consultant, speaks from experience: "There's a small percentage of people that are going to need help that can't unfortunately gamble responsibly and recreationally." His journey — seven years gambling-free — stands in sharp contrast to the industry's aggressive marketing tactics.

The Observer's investigation of 150 gambling websites found 52 sharing data automatically via Meta's tracking tools without explicit consent. This led to users being bombarded with gambling advertisements across their social media feeds — a digital trail that creates a potentially dangerous loop for those struggling with addiction.

Reality TV star Jack Fincham's story provides a stark illustration of gambling's destructive potential. "I have blown more than a million pounds thanks to drugs, booze and gambling," he revealed, describing instances of spending up to £40,000 in a single day. His experience — beginning with £5,000 blackjack hands and escalating to massive losses — exemplifies the dangers of unchecked gambling behavior.

The industry's digital marketing practices have drawn increasing scrutiny. Data privacy expert Wolfie Christl doesn't mince words: "Meta is complicit and must be held accountable. It benefits from facilitating problematic and unlawful data practices for its clients and systematically looks the way, using its terms and conditions as a shield rather than seriously enforcing them."

For recovering addicts like Carton, the normalization of gambling presents a double-edged sword. While it may reduce stigma around seeking help — "now it's a lot easier to ask for help. Because when I went through it, it wasn't" — it also creates new challenges for those at risk, particularly young adults entering the betting world.

The targeting of college students in states with strong collegiate sports traditions raises particular concerns. "That's the biggest target group of people we worry about because 21-year-old kids are kids," Carton explains. "They're still immature and don't really get the full value of a dollar."

As regulatory bodies grapple with these challenges, the Gambling Commission has announced measures to prohibit cross-selling, but gaps remain in protecting vulnerable individuals from third-party profiling and targeting. The Information Commissioner's Office has promised a "wide-ranging review" of tracking pixels, with potential fines of up to £500,000 for violations.

Meanwhile, the human toll continues to mount, hidden behind screens and algorithms that seem designed to exploit rather than protect. The intersection of technology, addiction, and corporate profit presents a complex challenge that requires immediate attention — before more lives are destroyed by the click of a button.