A United Kingdom High Court ruling has determined that Sky Betting & Gaming, a subsidiary of Flutter Entertainment, unlawfully collected and utilized a customer’s data for marketing without obtaining proper consent. The decision, issued by Justice Collins Rice, concluded that Bonne Terre Ltd., the operator behind Sky Betting, breached UK data protection laws by using cookies to gather and process personal data for targeted marketing campaigns from 2017 to 2019.

The case involved a claimant who had lost over £45,000 with Sky Betting & Gaming over nearly a decade. The claimant argued that the operator should have recognized his gambling addiction and refrained from targeting him with promotional materials. The High Court agreed, stating that the company lacked a lawful basis for collecting and using the data. Justice Rice described the profiling tactics as “parasitic.”

Ravi Naik, a lawyer at data rights group AWO who represented the claimant, emphasized the significance of the ruling, stating, “Hopefully this judgment will reduce harm to vulnerable people by serving as a warning to online gambling companies.”

Operator’s Response and Industry Implications

Sky Betting & Gaming has publicly disagreed with the ruling and is considering appealing the decision. A spokesperson for the company, cited by Bloomberg, stated, “We fundamentally disagree with this judgment and will be considering an appeal. We have made significant changes to our controls and processes over the past six years as part of our ongoing investment behind safer gambling and will continue to do so.”

The ruling has broader implications for the gambling industry, as it highlights the risks of data profiling and targeted advertising practices. Will Prochaska, director of the Coalition to End Gambling Ads, suggested that this case is not isolated, stating, “This case gives us a little window into one operator’s processes but this appears to be normal practice by all licensed online gambling operators in Britain.”

The United Kingdom government has been increasing regulatory oversight in response to concerns about problem gambling and the impact of online advertising. In 2022, Sky Betting & Gaming was fined £1.17 million by the UK Gambling Commission for sending promotional emails to customers who had self-excluded or opted out of marketing messages. More recently, in September 2024, the Information Commissioner’s Office (ICO) reprimanded the operator for improperly sharing user data with advertising technology firms.

The Future of Data Protection in Gambling

The High Court’s decision marks a potential turning point in how online gambling companies handle customer data. The claimant became aware of the extent of data collection through data subject access requests (DSARs), revealing that Sky Betting & Gaming was tracking hundreds of data points on individuals, updating them in real time, and sharing information with third parties. AWO, the data rights organization representing the claimant, called the ruling a “landmark moment,” stating that it could have significant repercussions for the entire online gambling and advertising sectors.

As UK regulators intensify their scrutiny of customer tracking and data protection, gambling operators may face increased enforcement actions. Earlier this week, the ICO announced plans to monitor major websites, including gambling platforms, to ensure compliance with data protection laws. The ruling against Sky Betting & Gaming underscores the need for companies in the sector to review and enhance their data handling practices to avoid potential legal challenges in the future.