Opinion: What are the implications of real-money gambling on Facebook?
Heather Healy, Head of Social Media at digital agency Stickyeyes, considers the issues facing the social media giant if it proceeds with plans to offer real-money gambling.
This week’s world exclusive from eGaming Review has revealed that Facebook is planning to offer eight licenses to UK operators in a venture that would see real money gambling introduced into the social network. The implications of introducing fully transactional gambling applications into the platform are significant, with many questions raised regarding its viability and security.
Importantly, this step change would bring gambling directly to consumers. As Facebook becomes the gateway for the internet for many users, it makes sense to utilise the platform in the best way possible, particularly with 800 million users worldwide and over half the UK population being active on the site. Although the “fish where the fish are” mentality is certainly vital for gambling operators, a layer of complexity could be added when we suppose that the nature of real money gambling in Facebook may not be a natural fit for consumers.
The success of social games such as Zynga Poker, where people can pay real money to gamble knowing they’ll never be able to withdraw winnings, is undeniable. In this instance, there is an element of mastery and peacocking by having a large balance in a free to play game that is viewed as kudos for an excellent player. When playing for money as opposed to kudos, the entire landscape changes. The big difference with the changes that we believe Facebook is discussing is when social gaming for fun and mastery becomes real money gaming for profit.
Losses are inherent to the nature of gambling but, when a significant loss happens in Facebook, where will the fault be attributed? If Facebook is to be the platform, can they relinquish all responsibility in the same way that they do with current apps or, is this a murky area that could lead to a challenging situation for Facebook?
The challenge extends further when we consider Facebook’s referral mechanism. With the average Facebook user having 130 friends, gambling providers will want to leverage that social graph. However, should one of those friends be under 18, or in another territory with significant restrictions on gambling, how will Facebook restrict them from seeing an update such as “I just won £100 on Roulette with
With Facebook in control of the information that is fed to a user through the News Feed, do they also become responsible for policing exposure to operators for those who shouldn’t see gambling content?
The key question from this week’s meeting should be “ who will be accountable for losses, security and the overall experience “ Facebook, Gambling Providers or the consumer?