

According to a recent investigation, dozens of gambling companies operating in the UK may be subject to a serious violation of data protection laws. These operators are accused of taking user data from their platforms and sharing it with Facebook’s parent company, Meta, without the users’ permission.
This information was released in a recent report by The Guardian. According to data that was collected by the sister paper The Observer, many UK gambling operators abused tracking software on their platforms. The method in question is Meta Pixel, a tracking tool hidden on the platforms.
This software tracks what users do on the platform and extracts the data. This mainly concerns what pages the users view and the buttons that they click. This information is collected and sent to Meta. The mega corporation then uses this data to make profiles of these users and brand them as likely gamblers.
Of course, you can see where this may end up. Once Meta profiles a user as a potential gambler, their Facebook accounts will be swarmed with advertisements about various gambling activities, such as online casinos, betting sites, and other websites with the same characteristics.
According to The Observer’s research, there were many instances where a user’s data was collected even before being allowed to consent or decline marketing data collection. If this is proven to be true in an official investigation, then it will be a serious violation of data protection laws.
During its research, The Observer tested 150 gambling websites operating in the UK market, such as virtual casinos, online sportsbooks, and even bingo platforms. The results were more than scary when it was uncovered that over 50 of these gambling operators were sending user data to Meta without any consent.
This hidden tool, Meta Pixel, was abused by all 50+ platforms to gather and send data even before users got the pop-up message to accept or decline marketing cookies. Unfortunately, high-profile companies like Bwin, Hollywoodbets, Lottoland, and Sporting Index were present among those 50+ websites.
While an official investigation is still underway and no additional information has been disclosed, the Information Commissioner’s Officer (ICO) warned that such breaches of data protection laws will entail severe fines and enforcement actions. The penalties can be up to £500,000 ($619,000).
Besides the financial repercussions, companies found guilty of such transgressions will face damage to their public image and a potential loss of license. Depending on each company’s count and depth of violations, other legal actions may be taken, such as incarceration.
Other potential risks of such data collection are outside the material realm. As we mentioned, once a user is profiled, this data collection results in aggressive, targeted marketing and advertisements for gambling activities. This brings a new level of risk for individuals who are pre-disposed to addictive gambling behavior or below the allowed minimum gambling age.
After The Observer’s investigation, some companies that were found to collect user data illegally have already changed their platform policies to stop automatic data collection. In response to this situation, Meta advises that advertisers be held accountable for obtaining consent for data collection.