Meta Defies Australian Regulator Over Illegal Crypto Gambling Promotion
Social media giant Meta has come under fire for permitting an Australian influencer to promote illegal offshore crypto-gambling services to her substantial following, despite explicit warnings from the national communications regulator about potential multi-million dollar penalties.
Influencer's Persistent Promotion of Rainbet Platform
The controversy centres around online streamer Dinah, who boasts an impressive 820,000 followers on Instagram. Her profile, where she describes herself as "ur Chinese gf in Australia," has featured multiple promotions for Rainbet, a self-described online crypto casino operating outside Australian regulations.
One particularly concerning video from last year, which garnered over 16,000 likes, carried the caption: "WHY PAY RENT WHEN U CAN JUST DOUBLE IT???? (ty rainbet! link in bio - helps me out a lot)." The footage clearly showed Dinah being handed a phone with the Rainbet application actively running.
Another promotional video featured the influencer in the front passenger seat of a car, again operating the gambling app, with the accompanying text reading: "50/50 Michelin star or Maccas speedrun (thx rainbet link in bio)." While the direct link to Rainbet had been removed from her profile by Tuesday morning, the promotional content remained accessible to her vast audience.
Meta's Inadequate Response to Multiple Reports
An anonymous user provided Guardian Australia with screenshots documenting their reports of ten separate posts promoting the crypto gambling application to Dinah's followers in January. In the majority of these cases, Meta responded that it would take no action to limit or remove the content, stating: "Our team reviewed the content. They found that it does not go against our community standards on fraud or scam."
Notably, Meta's reporting system lacks a specific category for reporting gambling promotion, potentially hindering effective moderation. In a couple of instances, the platform indicated it would restrict teenage users from viewing the videos. When Guardian Australia itself reported one post, it was quickly limited from teen view but allowed to remain publicly accessible.
A Meta spokesperson declined to comment on the situation, and both the posts and the influencer's account remained active as of Tuesday. Guardian Australia attempted to contact Dinah through her management agency but received no response.
Acma's Stern Warnings and Regulatory Actions
The Australian Communications and Media Authority (Acma) issued a clear warning to social media influencers last year, stating: "Stop promoting illegal gambling services to Australians. If you don't, you risk facing significant penalties." The regulator emphasised that "the promotion of illegal gambling services in Australia is illegal, and substantial penalties apply."
While individuals can face fines of up to $59,400, influencers who facilitate access to illegal online gambling services—such as by providing direct links—could be liable for penalties reaching $2.4 million. An Acma spokesperson confirmed that Rainbet has implemented measures to prevent Australians from accessing its services, but concerns remain about circumvention methods.
Since Acma began blocking illegal gambling sites in November 2019, the regulator has successfully blocked 1,455 illegal gambling and affiliate websites, with 220 illegal services voluntarily withdrawing from the Australian market. However, the authority acknowledges that some Australians may still be accessing blocked sites through virtual private networks that bypass geographical restrictions.
Broader Implications for Social Media Regulation
This case highlights significant challenges in regulating digital platforms and influencer marketing, particularly concerning financial services and gambling. The discrepancy between national regulatory standards and social media platform policies creates dangerous loopholes that can expose vulnerable users to illegal activities.
The situation has prompted calls for more robust reporting mechanisms on major platforms and clearer enforcement protocols to ensure that warnings from national regulators translate into concrete actions by multinational technology companies operating within their jurisdictions.
