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Read Full BioYouTube is at the center of a legal battle in Europe over claims in Italy that it is illegally promoting gambling. The case is now with the Court of Justice of the European Union (CJEU), which could be pivotal in deciding how much responsibility platforms bear for gambling ads on their sites.
In 2022, Italy’s media regulator (AGCOM) fined Google Ireland, the European headquarters of YouTube’s parent company, €750,000 ($870,000) for hosting videos that promoted online gambling. Italy has banned gambling and betting promotions since 2018.
Google hit back, arguing that under the EU’s “country-of-origin” rule, it answers mainly to Irish authorities rather than every national regulator. AGCOM, however, continues to issue penalties against the company and fined Google again in 2023, this time for €2,250,000.
It also issued a penalty against Twitch, fining the company €900,000 over allegations that creators were promoting gambling. Twitch responded by tightening its restrictions on content promoting gambling.
As a result, many streamers moved away from the platform towards more lenient streaming services. For example, Trainwreck moved onto Kick and frequently promotes gambling through Stake, part of the same ownership group.
Advocate General Partially Sides With YouTube
YouTube, however, lodged an appeal with the CJEU, and this week Advocate General Maciej Szpunar partially sided with the company. Szpunar stated that YouTube can be exempt from Italy’s gambling laws if it is not actively promoting gambling. If the company is found to be directly involved with the disputed ads, rather than passively hosting, then it could be subject to legal enforcement.
Italy’s regulator argued that this business model made YouTube an active participant rather than a neutral host because it profited from gambling-related promotions.
Szpunar disagreed, saying there’s no evidence that YouTube shaped or selected the gambling content. He said the platform was essentially just hosting those videos, not directing the ads themselves.
He admitted that “the increasing complexity of activities performed by video-sharing platforms, as highlighted by the referring court, makes it extremely difficult to distinguish between activities that influence content and those that do not.”
Court Will Issue Ruling In Coming Months
Szpunar’s opinion is not a legal ruling, but carries a lot of weight. The CJEU usually follows the opinions of the Advocate General. Marco Bassini, assistant professor of fundamental rights and artificial intelligence at Tilburg Law School, said the opinion could allow more illegal promotions by content creators.
He stated, “The Advocate General concludes that neither the contractual arrangements in place nor the specific features of the YouTube Partnership Programme necessarily indicate that Google played an active role that would give it control over the content.”
He added that “the mere existence of contractual relationships between service providers and content creators, even where the latter disseminate illegal content such as gambling advertising, does not in itself differentiate them from any other user.”
If the judges follow his lead, YouTube would only be held responsible for ads it manages or directs, not for those uploaded independently by users or advertisers. The Court of Justice will deliver its ruling in the coming months.
Social Media Platforms Generate High Revenue From Promoting Illegal Gambling
The ruling will be particularly relevant in Europe, where many countries are taking a strong stance against gambling advertising. This week, Italy joined gambling regulators in other European countries to announce a joint strategy aiming to reduce illegal online gambling.
Part of the strategy is to call on digital platforms and social media networks to strengthen their control mechanisms to prevent advertising content from unauthorised operators.
YouTube, however, is resisting placing overbearing restrictions on content creators. Similarly, it has been found that Meta, the parent company of Facebook, Instagram, and WhatsApp, generates billions in revenue from promoting unregulated gambling platforms.
