previously: Big Tech platforms: mall, newspaper, or something else?, surveillance licensing in practice

The problem with big, do-everything state privacy laws is they have oversized impact on smaller and more honest companies, while the larger and more criminally inclined have the lawyer budgets to just throw compliance paperwork at the problem. It’s time for a new approach to state privacy laws: start with known surveillance harms and look for places where the state has some leverage to address them. We need more, but shorter, privacy laws.

I still think that eventually we’re going to have to come up with some kind of surveillance licensing scheme. If a slot machine needs a license, and a private detective needs a license, than a company that manipulates your habits like a slot machine and surveils you like a detective should need a license. But let’s not delay doing something positive just because we can’t get a general-purpose solution right away. A promising place to start will be with regulating surveillance related to businesses that are already licensed.

Read the whole thing: Smartphone Gambling is a Disaster by Jonathan D. Cohen and Isaac Rose-Berman. Mobile gambling apps must be licensed by the state, so every license renewal is an opportunity to require disclosure of not just algorithms used to boost engagement within the app itself, but also the advertising targeting practices used to promote the app.

Today, if you look up gambling brands like FanDuel Sportsbook on Meta Ad Library, you can see the ad creative, but not the decision-making criteria used to match an ad to a user.

Finding new gamblers is big business. This LinkedIn ad asks Looking to extend your reach among college-age sports bettors? and offers dynamic, cross-device campaigns.

And that’s a problem. We know from experience outside the USA that the gambling industry uses a variety of approaches to seek out people with gambling problems, and those at risk of developing a gambling problem. Because one of the motivations for state gambling licensing systems is to help prevent problem gambling, a requirement to disclose targeting practices will not just help understand how the big surveillance platforms work, but also address a known human problem.icmyi: Following legalization, sports betting spreads quickly, with both the number of participants and frequency of bets increasing over time. This increase does not displace other gambling or consumption but significantly reduces savings, as risky bets crowd out positive expected value investments. And the knowledge gained from surveillance advertising disclosure in one area will help inform future laws. Big, top-down privacy laws don’t just have the problem that big evil companies can adapt. They’re also working from inadequate knowledge that could be filled in by smaller, more specific legislation. The problems of how surveillance advertising practices can be treated under the law are complex. We need to re-focus how we approach state privacy laws: go after a real, identifiable surveillance problem, make a difference, collect data, and repeat.

Update 13 Mar 2026

Tonko, Blumenthal Reintroduce SAFE Bet Act Addressing Sports Gambling This bill would Provide that a sports wagering operator may not use artificial intelligence to track the sports wagers of an individual; create an offer or promotion targeting a specific individual; or create a gambling product, such as a microbet. (A promising start, but would encourage platforms to use so-called privacy-enhancing technologies to target cohorts of likely problem gamblers in an obfuscated way.)