Ethical Concerns of Targeted Advertising in the Gambling Industry

Recent investigations by The Observer have uncovered that gambling websites have been unlawfully sharing user data with Meta, the parent company of Facebook and Instagram.

This practice has led to people being bombarded with betting adverts and offers such as “free spins” and “win up to 5,000 times your bet”.

The data-sharing controversy has raised serious concerns about privacy, consent, and the ethical implications of targeted gambling advertising, particularly when it comes to those who are prone to compulsive or addictive behaviours and those who are financially unstable.

Advertising has become a key tool in shaping consumer behaviour, engaging and attracting consumers with the ability to influence decisions easily. However, with great power comes great responsibility, and when being able to persuade somebody to comply with an intended action, it’s important to consider the ethical implications.

Online advertising is driven by algorithms that use vast amounts of user data to deliver highly personalised content. Driving consumer action through advertising is particularly apparent in gambling, where targeted ads are designed to provoke an immediate response.

In this instance where gambling companies have been sharing user data with Meta, it has become deeply problematic, and the ethical standards have dropped. By using the data provided to them by the gambling companies, they have been able to tailor promotions to users’ preferences. Offers like “free bets” or “new user offer” are common examples that create a sense of urgency, encouraging quick decision-making to avoid missing an offer that might not be available again.

While this is an effective marketing tool, it has become a cause for concern in the gambling industry. Not only have companies misused users’ data, but they have also failed to safeguard those who are vulnerable to gambling. Those who are struggling with gambling addictions, have requested the operator to ban them from using their betting sites or sought support to curb their gambling habits are finding themselves drawn back in by advertisements specifically designed to exploit their vulnerabilities.

The consequences of gambling addiction can be severe. The worst cases see sufferers endure financial ruin, relationship breakdowns, mental health struggles, and even the loss of life. The Guardian published one harrowing example of a man who was targeted as a “high value customer” and was sent more than 1,300 emails offering him free spins by the Sky Bet group.

The victim, who was trying to curb his gambling addiction, was receiving multiple emails a day by Sky Bet despite having closed his account. This ultimately led to him reopening his accounts and depositing large amounts of cash, including £11,000 in a single day. The effect this had was devastating as he was hiding his addiction from his wife, begging friends and family for money, and ultimately ended up contemplating suicide. This alarming downward spiral stemmed from his data being used to target him as someone who would make an instant decision to spend money.

After he had managed to regain control of his addiction, he then contacted Sky Bet and demanded to know why they had targeted him so intensively. He submitted subject access requests for logs of the data it had on him. The company provided him with documents revealing they and their partners held hundreds of thousands of pieces of data on him. Information had also been shared with at least 18 third parties for further marketing – including Facebook and Google. After he first closed his account, he noticed on the data that he was labelled as a “high value” customer and one to “win back”.

In a landmark legal ruling, the High Court ruled that the targeted marketing this person received was unlawful. The Judge said that while the person may not have explicitly opted out of ads, he had been gambling compulsively and was therefore not in a state to consent to the use of his data for profiling and targeted marketing. Sky Betting & Gaming, Sky Bet’s parent company, is considering an appeal, however if the original decision is upheld, the ruling could have significant repercussions for the gambling industry.

This case of unlawful marketing is not the only one to have consequences. In September 2024, the Information Commissioners Office (ICO) reprimanded Sky Betting & Gaming for unlawfully processing user data through advertising cookies without consent. The ICO emphasised that this was a serious cause for concern as the misuse of data, particularly in areas such as gambling, can have significant consequences.

These issues highlight the broader ethical problem of companies allowing advertisers to capitalise on user data without sufficient oversight. Gambling addiction is a recognised mental health issue and the fact that personal data, obtained without consent, is being used to target people at their most vulnerable points raises questions about accountability and how regulations need to change.

The data-sharing controversy underscores the need for stricter enforcement of privacy laws. Under the UK Data Protection Act 2018 and other data protection regulations, people should have control over how their information is gathered, stored, accessed and used. However, if reports indicating that gambling websites have been sending user data to Meta without consent are true, there is a clear breach and violation in both privacy laws and ethical standards.

At Barings Law, we believe those affected by this unethical data sharing and targeted advertising deserve justice. The unlawful transfer of data not only breaches privacy rights but also contributes to harmful behaviours that can have lasting consequences on people and their families. We are taking legal action to hold certain gambling companies accountable for their role in this issue.

By challenging these practices, we aim to enforce greater transparency in how personal data is handled and ensure tech giants and gambling companies adhere to the strict regulations designed to protect consumers. Our legal challenge seeks compensation for affected individuals and calls for stronger safeguards to prevent similar data misuse in the future.

If you believe you have been unfairly targeted by gambling advertisements after using the following websites, we encourage you to join our legal action. Your experience could help bring about the change needed to prevent others from being similarly exploited.

At Barings Law, we specialise in data breach claims and can help you take legal action against gambling companies who are suspected of unlawfully sharing your personal information.

If you have visited any of these gambling websites and believe your data was shared with Meta without your consent, you may be entitled to compensation.

Barings Law will act on your behalf on a no-win no-fee basis, meaning there is no risk to you. However, it is important that you cooperate with our legal teams at every stage.

All you need to do is click the button below and fill in a short form. From there our legal experts will assess your case to see if you have a valid claim, and then they will contact you to get the ball rolling.