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Betsson Group’s Malta-based subsidiary, BML Group Ltd, faces a significant legal setback as Sweden’s Supreme Court has upheld a ruling requiring the company to repay around €500,000 to a former customer who struggled with gambling addiction.
The SGA confirmed the decision in an announcement today (July 1), reaffirming a December 2023 judgment by the Patent and Market Court of Appeal, which found that BML Group had taken advantage of the player’s known gambling issues through aggressive marketing tactics and bonus offers.
The player in question gambled on Betsson’s online casino from 2009 to 2014, a period that predates the implementation of Sweden’s new Gambling Act in 2019. In January 2012, Betsson elevated the player to VIP status, which led to an increase in targeted marketing aimed at him.
Over the next two years, until the player voluntarily excluded himself in October 2014, he incurred net losses totaling €527,395. In addition to the repayment, the Supreme Court also ordered BML Group to cover legal fees amounting to SEK718,750, roughly €64,500.
Betsson Was Aware of Customer Vulnerability
The Supreme Court’s ruling highlighted that Betsson was fully aware of the customer’s vulnerability yet chose to continue promoting gambling chose to continue promoting gambling activities through direct marketing. While the court overturned a lower court’s decision to award SEK10,000 (€898) for emotional distress, it upheld the determination that the gambling agreements made during the VIP period were invalid.
In its judgement, the court emphasized that enforcing these agreements would breach principles of good faith and honor, given the circumstances surrounding the player’s gambling addiction.
The evidence showed that BML Group had collected extensive information about the player’s gambling habits, using this data to personalize marketing efforts, including bonuses and direct communications from staff acting as personal contacts.
The court expressed “no doubt” that the player met the clinical criteria for a gambling disorder long before he received an official diagnosis. Although these events took place before the implementation of Sweden’s 2019 Gambling Act, the court noted that Betsson’s use of behavorial data and automated systems provided them with a clear understanding of the player’s gambling issues.
Betsson Disappointed
Betsson expressed disappointment following the Supreme Court’s ruling, marking another setback for the company after its loss in the Patent and Market Court of Appeal. That court had already criticized Betsson for its practices, which included promoting high-risk digital slot games and offering bonuses that incentivized gambling behavior.
“We are of course disappointed with the Supreme Court’s decision in this individual case,” Betsson AB president and CEO Pontus Lindwall said today.
“At the same time, we note that these are very specific circumstances and that the judgment is not expected to have any broader financial consequences for our operations.”
“Betsson has for a long time implemented rigorous processes for responsible gaming. We do not allow customers with gambling problems known to us to use our services,” he added.
Source: NEXT.io
