On 13 February, X moved to ban gambling partnerships and influencer collaborations. What surprised me was a large percentage of the industry acted as if there was a huge, sudden ideological shift. In actual fact, the decision feels like one that is a long-overdue correction. One that brings to light how dependent parts of our ecosystem have become on a channel that isn’t very stable.
Influencer marketing on social media channels has always been a bit of a regulatory grey zone, and one that got many operators and affiliates into trouble in terms of compliance fines. It allowed brands to drive scale at pace and proved its worth with strong conversion metrics from highly engaged audiences, which, of course, is an attractive prospect. But it also created a blurred line between entertainment and advertising faster than compliance frameworks could keep up with.
The big surprise is that a lot of the industry thought the loophole would last forever, not that X is now more stringent in their boundary. I think we also need to understand that this isn’t an anti-gambling stance from X. They have kept traditional advertising methods open for brands that go through the formal approval process. It’s a more nuanced change that allows them to control gambling revenue. With influencer partnerships, their control is minimal. The transaction model bypasses them, which can make it difficult to regulate their policies and receive direct monetisation.
I think this is an important distinction to make as it creates a different narrative. Social media platforms aren’t making a decision to outright ban gambling. They are remodelling who is in control of the messaging – and, of course, from the commercial standpoint where the money flows. This could be a big reset for operators that rely heavily on growth ecosystems. If one platform policy change will cause huge issues in terms of player acquisition, there are maybe some deeper questions to ask around their acquisition model and the diversity of their strategies.
Affiliates and creator-led media brands will most likely face the biggest disruption. Entire business models were built on social distribution coupled with performance deals. I think we will see some pivot well towards owned audiences, but those who relied on the algorithm for reach as opposed to long-term brand equity will struggle. Ideally, this news will improve the quality of content in the affiliate space, but there will be some short-term pain.
Inconsistent enforcement
What’s interesting is there is already an inconsistency of the enforcement of this new policy. We are still seeing prediction markets and fintech promotions, and at this early stage it looks as if traditional sportsbooks and casinos are under much more scrutiny. It may not be intentional, but it does highlight that the definition of ‘gambling’ can be very fluid when platforms are balancing regulatory risk against advertising relationships.
From an agency perspective, there is also a clear divide emerging within marketing circles. Performance-driven marketers view the move as the removal of one of the most efficient acquisition channels available. Brand-led strategists see it differently, as a push toward more sustainable, transparent marketing – a model that is far more brand-led. For me, the main issue is that your marketing needs to be futureproofed. To survive tighter platform governance you aren’t in control of, marketing can’t be overly reliant on anything.
There is an uncomfortable takeaway here, which is that many igaming brands are over-indexed on audiences that are rented, as opposed to owned. Social platforms have always been volatile environments where rules can shift overnight. Treating them as permanent infrastructure was risky, even if it delivered short-term gains. The operators and agencies that adapt fastest now will likely be those who treat social as one layer of a broader ecosystem, not the foundation of it.
This isn’t the end of influencer marketing in gambling, but it is a sign the model is entering a more restricted era. Platforms are increasingly acting as regulators, setting boundaries faster than actual legislators. For an industry built on innovation, that doesn’t have to be a setback. It could be an opportunity to sit back, re-strategise and create more diversified marketing campaigns.
As managing director of Digital Footprints, Sharon McFarlane has built a digital marketing agency from the ground up to serve over 100 clients worldwide. Established in 2010, this award-winning agency was created specifically for the igaming ecosystem, servicing affiliates, operators and suppliers.
Have Your Say
Take our short customer survey on EGR’s content and data offering for the chance to win a £100 Amazon voucher. It will take less than three minutes, with the findings used to inform our plans to improve the platform.
The post Digital Footprints: X’s gambling influencer ban is a warning shot to the marketing model first appeared on EGR Intel.
The agency’s managing director, Sharon McFarlane, says we’re “entering a more restricted era”, underlining the need to deploy diversified campaign strategies
The post Digital Footprints: X’s gambling influencer ban is a warning shot to the marketing model first appeared on EGR Intel.