Meta is committed to cutting illegal gambling ads, but revenue from it is a challenge

Reuters has seen internal documents tracking Meta’s ad revenue from harmful gambling adsThe ads were tied to illegal gambling, unsafe health products, and sex servicesMeta has the capacity to engage 95% of this content, but the documents suggest that the company is taking a cautious approach lest ad revenue dip too harshly

A new investigation by Reuters, a leading media outlet, has indicated that Meta, the company behind popular services such as Facebook and Instagram, among others, is actively looking into the illegal and potentially fraudulent, and harmful content that is pushed across its platforms.

Specifically, Meta estimates – based on Reuters reporting – that 10% of its revenue from ads comes from potentially harmful ads tied to dubious health products, sex services, and illegal gambling.

Meta generates 10% of its revenue from harmful ad content, such as gambling

Many of these ads can be flagged and shut down right away, argues Reuters, basing it on documents it examined, but Meta is still treading carefully, as it does not want to have a sudden drop in its ad revenue by wiping out all such content at once.

Meta, though, is very much aware of what is going on, Reuters ads, with 15bn "higher risk" scam ads shown to its users every single day, and Meta earning about $7bn in annualized revenue from the category.

According to Reuters, Meta has systems that can flag 95% of all fraudulent content, and in cases where the platform isn’t sure, it can just keep pushing the costs on ads on the advertisers, which will supposedly make it harder for people conducting such schemes to foot the bill and justify their costs.

However, Meta has offered context about Reuters’ reporting, with company spokesperson Andy Stone commenting for the media and explaining why the documents seen need not be taken at face value.

"The assessment was done to validate our planned integrity investments – including in combating frauds and scams – which we did. We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either."

Meta has been intensifying its crackdown on illegal ads

In other words, Meta is committed to reducing harmful content on its platforms, but it is also mindful of the potential financial impact this may have. Stone has denied that the company is purposefully delaying a more definitive action.

In 2025 alone, another document suggested, the company already plans to reduce such harmful ads by 50% while intensifying its commitment to untangling the rest of the fraudulent ads. At the same time, Meta has clashed with regulators all over the world, including in Italy and France, and notably in Malaysia.

In Malaysia, local watchdogs have accused Meta of not doing enough to limit harmful content, such as illegal gambling.

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