Facebook Demands $10,000 for Fan Pages
Posted: October 24, 2012
Updated: October 4, 2017
According to reports, Facebook is extorting gambling-related fan pages.
According to a story on Casino s, social media giant Facebook has set its pretty eyes on igaming companies.
Facebook removed the long-running fan page of a casino program owner. In the following correspondence, Facebook told the program that it should pay a fee of $10,000 per month just for having a “gambling-related” fan page. No, the 10k is not advertising money, it is just a fee for having the fan page.
the ads appearing on the right side of FB, telling you to play online slots or put internet bets for sports? Might be a thing of the past soon. The social media giant also told the program that it should spend a minimum of $30,000 a month on advertising just to be able to run any “gambling-related” campaign on Facebook, clearly an amount of money few can afford.
According to legal experts, the above two actions are clearly a breach of contract from Facebook’s side, as its Ad Guidelines do not mention any cash limit on advertising. They do not even have a separate category for “gambling-related” advertising.
Also, having to pay for a fan page is mentioned nowhere in the and Conditions. They do not even stipulate “gambling” specifically.
Other casino s confirmed the story, saying they also received letters demanding up to GBP 10,000 for having a simple fan page. Many referred to Facebook’s actions as simple extortion.
So, why is all the fuss? Facebook’s shares are far down from their original IPO price. Eager to find a way out, the company had announced earlier its intentions to move towards real-money gambling. It is clear that they have started to put pressure on everybody they consider to be competition.
The stakes are high. With a favorable change in American gambling laws, real-money wagers on the internet might be a possibility all over the USA. Facebook wants a big slice of the pie. But until the laws are ed, the company wants to tell the stock market that it is ready for action.
