A UK High Court judge has ruled that Sky Betting & Gaming (SBG), part of Flutter Entertainment, illegally collected and profiled a problem gambler’s data for marketing purposes. The judgment shines a harsh light on the gambling industry’s data practices, setting the stage for potential legal challenges across the sector.
High Stakes: The Data Collection Practices in Question
The court found that SBG had used cookies to collect and process data without proper consent between 2017 and 2019. Justice Collins Rice labeled the company’s actions “parasitic,” criticizing its use of personal data for targeted advertising.
The claimant, whose identity remains anonymous, lost over £45,000 in nearly a decade of gambling on Sky Bet’s platforms. He argued that the company failed to identify him as a problem gambler and continued to target him with ads. This, he claimed, directly contributed to his financial losses.
Ravi Naik, the claimant’s lawyer and a representative from the data rights agency AWO, stated, “This judgment is a step toward protecting vulnerable individuals from harm. It serves as a warning to online gambling firms that misuse customer data.”
A Broader Problem in the Gambling Industry
This case has ignited a broader discussion about how gambling companies handle customer data. The industry is notorious for using analytics to predict user behavior, encouraging sustained betting. These practices raise significant ethical and legal questions.
Will Prochaska, director of the Coalition to End Gambling Ads, commented, “The judgment reveals the inner workings of just one operator, but it’s clear this is standard practice across licensed online gambling operators in Britain.”
A previous regulatory action against Sky Bet highlights this pattern. In 2022, the UK Gambling Commission fined the company £1.17 million for sending promotional emails to self-excluded customers—a group that had voluntarily opted out of gambling advertisements.
Sky Bet’s Response and Potential Appeal
Sky Bet has rejected the court’s findings, claiming that it has improved its practices since the period in question. “We fundamentally disagree with this judgment and are considering an appeal,” said a company spokesperson. “Over the past six years, we’ve invested heavily in safer gambling initiatives and will continue to do so.”
Despite these claims, the company’s past infractions complicate its defense. In 2023, the UK’s Information Commissioner’s Office (ICO) reprimanded SBG for unlawfully sharing data with ad tech companies.
Industry-Wide Implications of the Ruling
The High Court’s decision could set a precedent, putting gambling firms under greater scrutiny. The ICO has already increased its focus on online tracking practices, targeting gambling platforms in particular.
A table showcasing recent regulatory actions against Sky Bet illustrates the growing pressure on the industry:
Year | Action | Details |
---|---|---|
2022 | Fine by UK Gambling Commission | £1.17 million for marketing to self-excluded customers |
2023 | Reprimand by ICO | Unlawfully processing data and sharing with ad tech companies |
2025 | High Court Ruling | Illegal data collection and profiling of a problem gambler |
AWO has hailed the judgment as a “landmark moment,” warning that other gambling companies may face legal challenges if they continue similar practices.
Stricter Data Regulations on the Horizon
As concerns over gambling-related harm grow, regulators appear to be tightening the noose on companies that flout data protection laws. The ICO recently announced a crackdown on online tracking practices, signaling that gambling platforms will remain under heavy scrutiny.
The ripple effects of this case could fundamentally reshape how the industry operates. Whether other gambling firms will proactively reform their data practices or wait for further legal action remains to be seen.
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