Meta’s new policy sparks debate over alcohol and gambling ads

Meta’s email announcement to allow alcohol and real money gambling platforms on its services has received mixed reactions from industry leaders. The alcohol industry is currently adopting a wait-and-see approach regarding Meta’s advertising policies for WhatsApp. Meanwhile, real money gaming companies in India are criticizing the tech giant’s move to permit offshore gambling and betting apps to use its platform in India.

Storyboard18 was the first to report Meta’s plan to introduce three new verticals for WhatsApp Business, including alcohol and real money gambling.

An email released by Gupshup on behalf of Meta states, “We are excited to announce that starting August 27, 2024, businesses in India, APAC, and LATAM can onboard the WhatsApp platform for messaging in the following verticals: a) Alcohol b) Over-the-counter products (prescription drugs and medical devices are still prohibited) c) Real Money Gambling.”

The email further states, “Meta’s updated policy now permits these verticals for both promotional/marketing and utility use cases, although WhatsApp Commerce restrictions will still apply.”

A top industry leader from alcobev industry said, “It is a great news for the industry in one way. We already are facing lot of restrictions in communicating with our consumers. This can help us be in touch and engage with the consumers in an unique way. Hopefully, the regulatory measures are being taken care by the platform inorder to promote alcohol brands.”

Anuraag Saxena, CEO of the E-Gaming Federation, said, “Consumer protection regulations are robust in our country. Gambling is largely illegal in India, and advisories issued by the Department of Consumer Affairs (DoCA) and the Ministry of Information and Broadcasting (MIB) restrict the use of digital platforms for certain categories of advertisements.”

Saxena added, “I am sure platform operators in India will consider this decision in light of Indian laws and social realities and engage in dialogue with regulators, policymakers, and social organizations before implementing such a significant change.”

Another industry leader from the real money gaming sector said, “Our industry is currently seeking clarity on illegal betting and gambling versus legitimate real money gaming. With Meta’s move, it will only exacerbate the confusion, leading users to engage with illegal offshore gambling apps and other unlawful activities.”

Yash Chandiramani, Founder and Chief Strategist at Admatazz, commented, “Morally, I don’t think these addictive products and services should be advertised on social media, but if they’re within the legal framework of our country’s laws, there’s little that can be done. I’m sure Meta will have protocols in place to ensure the user’s age is verified and consent to WhatsApp marketing is obtained.”

Chandiramani added, “However, we need to see what the I&B Ministry has in store in terms of guidelines before we can truly comment on how this will play out.”

Storyboard18 reached out to Meta for a comment. Story will be updated after we receive official comments from Meta. Gupshup declined to comment on the story.