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The gaming industry’s data collecting and marketing strategies have come under scrutiny following a recent High Court decision. According to Justice Collins Rice, between 2017 and 2019, Bonne Terre Ltd., doing business as Sky Betting and Gaming (SBG), illegally gathered and utilized personal information via cookies to create a claimant profile for focused online advertising. The judge called these behaviors “parasitic.”Case Details and SB’s Response
The claimant, who lost over £45,000 across a decade with SBG, argued that the Flutter Entertainment-owned company failed to recognize him as a problem gambler. He also alleged that SBG improperly shared his data with third parties for marketing purposes. Evidence revealed that SBG assigned individuals up to 500 real-time data points, supplemented by tens of thousands of third-party data points, to predict behaviors and segment marketing campaigns.
SBG expressed its disagreement with the judgment, stating: “We fundamentally disagree with this judgment. 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 company is considering an appeal.
Justice Rice noted that the ruling applies only to this specific case, as industry practices have evolved since the period in question. A decision on potential remedies, including financial compensation, is still pending.
The case highlights the growing scrutiny of data practices in the gambling industry. AWO, a data rights agency representing the claimant, called the ruling a “landmark moment” for online marketing and data protection in the gambling sector.
“This groundbreaking ruling is a legal first for online marketing and the related legal principles and could have major implications for the multi-billion-pound online gambling sector in the UK and the online advertising industry as a whole,” AWO stated.
The case builds on previous regulatory action against SBG, including a £1.17 million fine in 2022 for sending marketing emails to self-excluded customers. It underscores the urgent need for gambling operators to prioritize data privacy and responsible marketing practices.