UK Gambling Sector Faces Legal Reckoning Over Data Misuse
A landmark legal decision against Sky Bet has exposed systemic flaws in how operators handle consumer data, raising urgent questions about ethics and regulatory oversight.

High Court Condemns Sky Bet’s Data Practices
The UK gambling sector faces a watershed moment after the High Court ruled that Sky Betting and Gaming (Sky Bet) breached data protection laws by targeting a problem gambler with personalized ads without valid consent. The individual, who lost £45,000 over a decade, was tracked via cookies and labeled a “high-value customer” by Sky Bet’s algorithms.
Justice Collins Rice concluded that the operator’s consent mechanisms were legally insufficient, stating:
“I have been at pains to set out, a decision confined to the particular circumstances of this case, and to the particular historical period in question. Other cases will have different facts and circumstances, particularly as, I am told, SBG’s own policies and practices, and those of the wider online gambling industry, have since evolved so as even further to reduce the risk of the emergence of claimants such as the present one.”
The ruling has intensified scrutiny of industry-wide practices, with campaigners alleging widespread misuse of consumer data.
Campaigners: “Industry Weaponizes Data Against Vulnerable Users”
Advocacy groups are demanding immediate regulatory intervention. Will Prochaska, founder of the Coalition to End Gambling Ads, described the case as a potential turning point, arguing:
“This case could be seismic for the gambling industry though—if it stops operators from using customers’ data against them. It will inevitably lead to questions for the regulator too. Why has the Gambling Commission permitted such unethical marketing practices for so long?”
Prochaska’s criticism reflects broader concerns that operators prioritize profit over identifying at-risk users. The Gambling Commission and Information Commissioner’s Office (ICO) now face calls to audit data practices across the sector.
2025 Reforms: Stricter Rules for Direct Marketing
New UK Gambling Commission (UKGC) regulations, effective 1 May 2025, will require operators to let customers “opt in to the product types they are interested in receiving and the channels through which they wish to receive marketing.” The rules aim to prevent unwanted cross-selling and ensure users only receive consented communications.
While the Betting and Gaming Council (BGC) has introduced age-gating measures for digital ads—restricting them to users aged 25+ on platforms like YouTube and Facebook—critics highlight gaps. The BGC’s Industry Code for Socially Responsible Advertising states:
“Sponsored/paid-for digital media advertisements must be targeted to consumers aged 25+, where digital media platforms provide a 25+ age filter. This measure adds an additional level of assurance around the age of consumers where operators do not hold any first-party data about the consumers targeted (i.e., where operators are wholly reliant on self-certified third-party data, which may not always be correct).”
Notably, the code omits explicit consent requirements, a flaw campaigners say undermines accountability.
Legal Experts: Consent Remains a Grey Area
The Sky Bet case underscored the complexities of lawful consent. Justice Collins Rice emphasized three criteria:
- The subjective state of mind—whether the individual truly understood and agreed.
- The autonomy in the procedure—whether the method of giving consent allowed for genuine choice.
- The evidentiary standard—whether the operator could prove consent was properly obtained.
Sky Bet, now owned by Flutter Entertainment, is considering an appeal but maintains it “never shares data with companies outside of its group for them to use for their own marketing.”
Political Scrutiny Intensifies Over Ad Standards
The Department for Digital, Culture, Media, and Sport (DCMS) recently resumed hearings on gambling reforms, with advertising ethics taking center stage. While the Sky Bet case was not explicitly discussed, Labour’s Stephanie Peacock, DCMS Undersecretary, confirmed that ad regulation remains a priority, alongside affordability checks and online slot stake limits.
A October 2024 government briefing on gambling ad rules reiterated that standards fall under the Committee of Advertising Practice (CAP) and Broadcast Committee of Advertising Practice (BCAP). However, the Gambling Review’s white paper proposed stricter consent requirements, urging the UKGC to “strengthen consent for direct marketing for online gambling, with new and existing customers given more choice on what offers they want (including requiring consent to ‘cross-selling’ new products) and how marketing is sent to them.”
The Sky Bet ruling and impending 2025 reforms signal a reckoning for the UK gambling industry. Operators must now reconcile aggressive marketing tactics with evolving data privacy expectations, while regulators face pressure to close enforcement gaps. For vulnerable users, the outcome could determine whether the sector shifts from exploitation to accountability—or risks further legal and reputational fallout.