The Swedish Patent and Market Court of Appeal in an unprecedented decision has required Betsson, a leading betting firm, to reimburse all losses to a plaintiff suffering from gambling addiction. This decision is expected to have far-reaching effects and is in line with similar rulings in other jurisdictions within Europe.
Potential for Further Law Suits Against Betsson
According to the ruling, Betsson is obligated to return the plaintiff’s historic spending as well as compensate for emotional suffering. The plaintiff has accused Betsson of leveraging aggressive marketing strategies, such as frequent bonuses, despite knowledge of his gambling problem. Given that this incident occurred prior to Betsson obtaining its Swedish license, the plaintiff had few legal options available.
Magnus Rydeving, an expert offering legal advice to those affected by gambling addictions, indicated that the court’s decision, forcing Betsson to compensate the plaintiff, may set a precedent for similar future cases. In a discussion with Dagens industri, a Swedish media platform, he suggested that the financial implications from this single case could represent merely the tip of the iceberg.
“We’re talking about hundreds of millions of krona upfront, and that’s only based on what I know. Obviously, there’s a lot more that’s not accounted for.”
Magnus Rydeving
In the aftermath, Betsson may have to confront the possibility of reimbursing hundreds of millions of krona to other victims who could leverage this recent verdict to strengthen their court cases. This could lead to a surge in lawsuits, which could severely hamper the company by draining its resources and time. An appeal to the Swedish Supreme Court is still an option for Betsson, though the firm has not disclosed its plan of action.
Ruling seems to Follow Broader Industry Trends
A glimmer of hope for Betsson lies in the fact that the case extensively focusses on the timeframe from 2014 to 2019, a period before the legalisation of the Swedish gambling market. Betsson, being a grey market operator in Sweden, faced regulatory scrutiny only with the formalisation of the industry in 2019. Consequently, any customer seeking legal action against the company post-2019 may encounter a significantly challenging legal fight.
This verdict reflects similar legal developments seen in countries like Germany, Austria, and the Netherlands. These jurisdictions have seen recovery of millions of euros from betting businesses in nearly 7000 cases where the legislation argued that firms operating outside the law should not profit from such practices.
Sweeden’s judgement highlights the steadily increasing legal scrutiny that unregulated gambling firms are coming under, carving out a strong precedent for accountability in the sector. However, it also incites ongoing conflicts between operators and EU regulators as certain jurisdictions may become untenable for licensed operators.
