High Court Rules Sky Bet Breached Data Laws to Target Problem Gambler

High Court judge Justice Collins Rice described the practices used by the company as “parasitic” as the court heard details of the case. The claimant had argued that Flutter Entertainment-owned brand SBG should have known that he was a problem gambler and that his data should not have been shared with any third parties.

Justice Rice had to clarify that the ruling was confined to this particular case and that the industry’s policies have evolved since the period in question. This breach took place in 2017-19.

SBG is still fighting its corner and may appeal the ruling:

“We fundamentally disagree with this judgment,” SBG explained in a statement. “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.”

While SBG was adjudged to be liable for the data breach, Justice Rice has not yet made a decision on the remedial actions and the financial compensation that could be required. SBG has previously been fined £1.17m for sending emails to customers who had already opted out or even self-excluded from the site.

The company was also reprimanded by the Information Commissioner’s Office (ICO) for unlawfully processing users’ data in 2024.

Landmark Case Reveals How Data is Used

The evidence used in this cased showed more information about how SBG and other companies may operate. The claimant had found that their data was collected and used after making access requests to a number of gambling operators. The data showed that individuals are assigned up to 500 data points, continuously updated by real-time data, and there are then thousands of further data points that are received from third parties which drive “propensity models” or algorithms that may predict the behaviour of the customers.

Data rights agency AWO presented the claimant in court, and explained how this could impact the industry:

“The 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 explained in a statement.

“It raises the prospect that not only SBG, but also other gambling companies, have been illegally profiling thousands – if not tens of thousands – of their vulnerable customers for years.”

There are also new rules and regulations that the ICO is bringing into action, which will ensure more monitoring to ensure compliance with the UK’s data laws and online gambling regulations.