BRUSSELS — The American tech giant Meta, which owns Facebook and Instagram, is facing allegations of promoting illegal gambling activities in Belgium through advertisements for mobile games.
According to a report published on Monday by Leon Y. Xiao, a member of the beClaws research group, Meta was paid by 172 mobile gaming companies to advertise game extensions that include “loot boxes” — surprise items deemed as a form of gambling under Belgian law.
Loot boxes, often purchased within games, randomly offer virtual items that assist players in progressing. While they are a controversial feature worldwide, Belgium has taken a strict stance by requiring game developers to obtain a licence to offer them. However, such licences are rarely granted, effectively banning the practice.
A 2022 analysis by beClaws found that 80% of mobile games offered loot boxes, raising concerns about encouraging gambling behaviour among children and teenagers.
Xiao’s new report reveals that the situation has only worsened, with 82% of mobile game developers now offering loot boxes and using platforms like Facebook and Instagram to promote them.
An analysis of 1,574 advertisements shows that these loot box ads were viewed 4.5 million times by Belgian users, with 1.26 million of those views coming from individuals under 21.
Among the most promoted games were “Genshin Impact” and “Brawl Stars,” which are particularly popular with younger audiences. The ad that garnered the most views was for “Harry Potter: Puzzles & Spells,” seen nearly 400,000 times.
Xiao emphasized the illegality of such advertisements, stating, “This illegal advertising for illicit gambling games is a separate offence from offering illegal gambling games.”
The findings highlight the challenges in enforcing Belgium’s strict gambling regulations in the digital realm, especially on platforms with massive reach like Meta’s.
The report also draws attention to the broader implications of gambling mechanics in video games. Studies indicate a correlation between gambling in video games and problematic gambling behaviour later in life. By allowing ads for loot boxes, Meta is seen as indirectly exposing young people to gambling risks.
Belgium’s Gambling Commission, responsible for regulating such practices, has struggled to keep pace with the rapid growth of mobile gaming and targeted advertising.
While the Commission rarely grants licences for loot boxes, the new findings suggest that enforcement measures need to be strengthened to prevent companies from bypassing the rules through online advertisements.
Meta has not yet commented on the allegations. However, the report is likely to amplify calls for greater oversight of social media platforms’ advertising practices, particularly concerning ads targeting young audiences.
Belgian lawmakers are expected to review the findings and may propose new regulations to close loopholes that allow such advertising.
As pressure mounts on Meta, the controversy could reignite the broader debate about the regulation of digital advertising and the responsibility of tech giants to protect vulnerable users from harmful content.
