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Sky Betting & Gaming Faces High Court Defeat

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Sky Betting & Gaming

Imagine discovering your favorite betting site used your data to fuel compulsive gambling behavior.

That’s what transpired as Sky Betting & Gaming (SBG) lost a critical High Court fight with a recovering gambler.

Picture far-reaching consequences for privacy, data protection, and how operators handle at-risk customers.

Read on to see how a judge’s ruling could reshape SBG’s marketing strategies and the wider gambling industry.

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Sky Betting & Gaming Loses Legal Battle: Court Reveals Improper Data Use & Targeted Marketing

3 Key Points

  1. Allegations of Data Misuse: SBG’s marketing practices allegedly fueled problem gambling, intensifying financial and emotional harm.
  2. GDPR Violations: Insufficient cookie banners and unclear consent methods undermined SBG’s defense.
  3. Uncertain Remedies: The Court deferred decisions on damages until liability details can be fully assessed.

Court Battle Over Data and Problem Gambling

The UK High Court of Justice has handed down a ruling against Sky Betting & Gaming (SBG) regarding accusations of privacy and data protection breaches. At the core of this dispute stands “RTM,” a recovering gambler who claimed SBG’s targeted marketing severely worsened his addiction. Under an anonymous designation, RTM argued that SBG had no lawful basis to process or exploit his personal data.

The Claim: Compulsive Gambling Worsened by Data Use

RTM claimed he was subjected to intrusive marketing emails, push notifications, and direct offers. He asserted SBG’s profiling algorithms identified him as a valuable yet vulnerable customer. This pushed him to deposit more than £31,000 between 2017 and 2018, outpacing his actual income and housing expenses.

RTM believed these tactics violated data protection regulations and guided him into deeper financial and emotional harm. The case, RTM v Bonne Terre Limited and Hestview Limited, hinged on how SBG used personal data to reel in at-risk bettors. Bonne Terre Limited is owned by Flutter Entertainment, while Hestview is SBG’s data controller.

SBG’s Arguments: Consent and Compliance

In its defense, SBG insisted it had valid consent for data usage, referencing the user agreements and cookie banners. It claimed compliance with the General Data Protection Regulation (GDPR) and alignment with the UK Gambling Commission (UKGC) codes of practice. However, the court found several glaring weaknesses in SBG’s data-handling approach.

Court’s Key Findings: Inadequate Consent

One essential aspect was whether SBG acquired valid consent for personal data and cookie usage. The High Court reviewed cookie banners and privacy statements that SBG used during the relevant period. It deemed them insufficiently transparent or specific, as demanded by GDPR.

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The judge highlighted that RTM tapped through these banners without understanding them. They lacked clarity about data usage, thus failing the bar for informed consent. As a result, SBG’s entire approach to data-based marketing, especially for someone demonstrating problem gambling indicators, breached core data protection principles.

Profiling Practices Under Fire

The ruling also focused on SBG’s extensive profiling of problem gamblers. According to evidence, the operator collected behavioral data, then presented offers tailored to RTM’s gambling patterns. This included personal enticements to deposit more, even when his gaming records indicated significant losses.

Under GDPR, any data regarding an individual’s mental health or addiction risk is considered special category data. Processing such data requires extra care and explicit consent. The court determined SBG’s disclaimers didn’t sufficiently inform RTM about these advanced profiling methods.

Big Implications for the Industry

The judge’s verdict underscores that marketing to at-risk players is risky. Regulators and courts increasingly focus on real-world outcomes, including financial or emotional distress. In prior rulings, courts only occasionally awarded damages to problem gamblers, complicating the notion of personal liability. This decision, however, clarifies that a licensee’s data use cannot override consumer protections and privacy.

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Lack of Transparency in SBG’s Approach

SBG’s compliance team argued it complied with UKGC and data laws. Yet the judge wasn’t persuaded, calling the cookie banners incomplete. The company’s failure to highlight potential problem gambling signals also came under harsh scrutiny. SBG’s sole reliance on disclaimers and sign-up forms fell short, exposing a gap between stated compliance and actual marketing execution.

Monetary Remedies Uncertain

Although the High Court sided with RTM on data misuse and marketing breaches, the question of damages remains unsettled. The judge said final remedies require deeper examination to ascertain the scope of financial or emotional harm. Courts often face complexity around causation for problem gambling. The ultimate compensation, if any, hinges on whether SBG’s actions directly aggravated RTM’s addiction.

Regulatory Spotlight

The case also reaffirms the UK Gambling Commission’s scrutiny of marketing and data usage. Previous enforcement suggests that operators failing to meet responsible gaming standards risk license reviews or heavy fines. Moving forward, SBG and similar companies might revise their marketing protocols, ensuring better detection of risky behavior. Enhanced transparency in cookie usage and user profiling will also be paramount.

The UK High Court’s ruling against Sky Betting & Gaming sets a significant precedent on privacy and data protection in gambling. By siding with a recovering gambler who alleged targeted marketing exacerbated his addiction, the court emphasizes the responsibility of operators to handle data ethically and proactively identify at-risk customers. With final remedies pending, SBG’s challenges—and the broader industry’s compliance standards—face heightened scrutiny.

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Following the completion of her master's degree in publishing and writing, Amanda embarked on her professional journey as an online editor for a prominent gaming blog. Now, she has smoothly transitioned into the iGaming industry, where she plays a vital role in upholding the highest standards of writing in our news pieces. Working closely with senior management, Amanda ensures that our content meets the utmost quality standards.

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