Sky Floors in Court over Gambling Addict's Data
Court Decides Sky Betting and Gaming Illegally Stored User Data
Sky Betting and Gaming, trading under the Bonne Terre Limited brand and owned by Flutter Entertainment, has been slapped with a guilty verdict by a judge for secretly collecting and utilizing the personal data of a customer who struggled with gambling addiction, breaching strict UK data protection laws.
The privacy violations occurred through the underhanded use of cookies, without securing the customer's explicit consent. Between 2017 and 2019, Sky sent direct, personalized messages to the affected individual.
Sky has openly disputed the court's decision, expressing their intention to mount an appeal, citing its recent endeavors to uphold safer gambling controls [1].
A Glimpse into Targeted Tracking
The case, tried at the UK high court, saw the claimant - a former problem gambler - lose over £45,000 ($56,000) through Sky's platform over a decade. The claimant asserted that the operator should've been aware of his gambling addiction and failed to protect his privacy by sharing his data with third parties without his consent.
Multiple Data Subject Access Requests from the claimant unearthed a veritable treasure trove of data accumulated about him. Over 500 data points were tracked and logged in real-time, making it clear that only a fraction of the complete data used for profiling a valuable customer was revealed [1].
Will Prochaska, director of the Coalition to End Gambling Ads, commented: "This case offers a behind-the-scenes look at one operator's practices, but it seems to be standard procedure among all UK-licensed online gambling operators." He pointed out numerous instances where gamblers suffering financial and emotional harm were relentlessly pursued by operators despite evident unmanageable losses [1].
The Appeal Decision
However, a representative for Sky stated that they may contest the decision, expressing: "We vehemently object to this judgment and will carefully evaluate an appeal. We have undergone sweeping changes to our controls and processes over the past six years as part of our ongoing investment in safer gambling measures and will continue to do so."
The judge acknowledged the evolution in industry practices since the incident but emphasized that the ruling was pertinent to the time period in question, denouncing the practices as "parasitic" [1].
Ravi Naik, counsel for the claimant, stated: "We hope this judgment will mitigate harm to vulnerable individuals by setting an example for online gambling companies." This decision follows previous reprimands that Sky faced over a similar incident involving unauthorized use of cookies to target ads at customers grappling with gambling addiction in 2024 [1].
[1] - Enrichment Data: The court's decision serves to establish a legal precedent for the protection of vulnerable consumers in the gambling industry, specifically addressing the unlawful use of targeted marketing on individuals with addiction-related vulnerabilities. This highlights the need for organizations to consider individual circumstances and vulnerabilities when seeking consent for processing personal data, particularly in contexts such as gambling where addiction risk is significant.
- Sky Betting and Gaming, despite their recent efforts to implement safer gambling controls, has been ordered by the high court to face consequences for violating UK data protection laws by secretly collecting and utilizing the personal data of a customer with a gambling addiction.
- The direct, personalized messages sent to the affected individual between 2017 and 2019 were revealed through Data Subject Access Requests, with over 500 data points tracked and logged in real-time, showcasing the prevalence of data tracking in the online gambling industry.
- The Coalition to End Gambling Ads, directed by Will Prochaska, noted that the practices unveiled in this case seem to be standard among UK-licensed online gambling operators, often continuing to pursue gambling addicts despite evident financial and emotional harm.
- Sky has expressed their intention to mount an appeal, stating that they vehemently object to the judgment and will carefully evaluate the appeal process, emphasizing their ongoing investment in safer gambling measures to protect vulnerable customers.
