September 18, 2024

Harmful Gambling | Online Gambling | Policy

FOR IMMEDIATE RELEASE

Campaign for Fairer Gambling Welcomes ICO Investigation Into Sky Betting and Gaming’s Unlawful Data Practices and Cookie Misuse

LONDON–  The Campaign for Fairer Gambling (CFG) applauds the decisive action taken by the Information Commissioner’s Office (ICO) against Sky Betting and Gaming (SBG), a Flutter Entertainment subsidiary, for the unlawful use of customer data and the unauthorized use of cookies. The ICO’s investigation, supported by Derek Webb, founder of CFG, in collaboration with AWO law firm and Clean Up Gambling, has uncovered unethical data profiling and cookie practices that have long exploited consumers.

Derek Webb, founder of CFG, commented: “Through our partnerships with Ravi Naik at AWO law firm and Matt Zarb-Cousin of Clean Up Gambling, we were able to help bring these unlawful practices to light. The ICO’s actions expose how Sky Betting and Gaming manipulated customer data and cookies to maximize profits at the expense of privacy and consumer trust.”

The ICO investigation confirmed that Sky Bet brands acted unlawfully by profiling customers for targeted advertising without their informed consent and by using cookies on their websites without proper user consent, violating data privacy regulations. These practices were designed to identify individuals likely to spend more or return after losses, further exploiting vulnerable customers.

Questions for British Regulators

This investigation has brought renewed scrutiny to British regulatory bodies such as the Gambling Commission, the Advertising Standards Authority (ASA), and the Department for Culture, Media and Sport (DCMS). CFG is calling on these regulators to clarify their positions on these unlawful practices and to outline the steps they plan to take in light of the ICO’s findings.

“The Gambling Commission, ASA, and DCMS must now demonstrate their commitment to consumer protection. These unlawful practices have occurred under their watch, and their response will determine whether they are serious about holding the gambling sector accountable,” said Webb.

Mounting Evidence for Gambling Reform

The ICO’s investigation adds to a growing body of evidence calling for urgent reform in the gambling sector. Since the release of the Tory government’s gambling review white paper, the following reports have highlighted systemic issues:

  • NERA’s report detailing the economic downsides of online gambling.
  • The Gambling Survey for Great Britain, revealing that harmful gambling is far more prevalent than previously recognized.
  • Testimony from the Gambling Advertising Reform Summit, where individuals shared their lived experiences of the damage caused by gambling marketing.
  • The IPPR report, which recommended significant tax increases on online gambling operators to curb harm.

With the ICO’s investigation now confirming unlawful data use and cookie practices, the case for more stringent regulation of the gambling sector is stronger than ever. The new Labour government must act swiftly to introduce reforms that will protect consumers from exploitation and ensure that gambling operators comply with legal and ethical standards.

U.S. Implications: A Warning for American Regulators

The ICO’s findings also carry significant implications for U.S. stakeholders, who have often looked to the British model to justify the expansion of online gambling. However, the revelations of data misuse and unauthorized cookie tracking in the UK should serve as a cautionary tale for U.S. regulators.

With weaker data protection laws and more advanced technology in the U.S., American consumers may be even more vulnerable to similar exploitative practices. Webb urged U.S. policymakers to reconsider their stance on online gambling expansion, stating: “This investigation shows how easily consumer data can be manipulated for profit. In the U.S., where privacy laws are weaker, there’s an even greater risk of abuse. Regulators must prioritize the protection of gamblers before allowing the industry to expand further.”

Flutter Group’s Troubling Track Record

Sky Betting and Gaming’s practices are part of a larger pattern of concerns within the Flutter Entertainment group, which includes:

  • Betfair, a Flutter subsidiary, was placed under “special measures” by the Gambling Commission and was implicated in a gambling-related suicide.
  • Paddy Power has been frequently reprimanded by the ASA for irresponsible advertising.
  • Stars, another Flutter brand, had executives involved in alleged illegal activity in the U.S.
  • FanDuel controversially claimed that daily fantasy sports were not a form of gambling, despite regulatory concerns.
  • These repeated violations across the Flutter group reinforce the need for tighter regulatory oversight to ensure that gambling operators do not prioritize profit over consumer safety.

The SAFE Bet Act: Timely and Necessary

As Webb emphasized, “It is not anti-gambling or prohibitionist to demand better legislation, better regulation, better enforcement, and better licensee suitability standards. The SAFE Bet Act, recently introduced by Senator Blumenthal and Representative Tonko, comes at a crucial moment in the global conversation on gambling regulation.”

The SAFE Bet Act seeks to close regulatory gaps in the U.S., ensuring stronger protections for consumers and greater accountability for gambling operators engaged in unethical practices. As evidence of the harmful impact of online gambling continues to mount, measures like the SAFE Bet Act offer a path toward responsible reform.

About the Campaign for Fairer Gambling

The Campaign for Fairer Gambling (CFG) advocates for evidence-driven policymaking and works to ensure transparency, fairness, and consumer protection in the gambling sector. CFG campaigns for stronger regulations and accountability, holding gambling operators responsible for unethical practices and promoting public awareness of the risks of harmful gambling.

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