Betting company ordered to repay losses of user with gambling addiction

Gambling might be marketed as entertainment, but what happens when the “house” targets those it knows are vulnerable? Sweden’s Supreme Court has ordered a subsidiary of Betsson Group to repay over €500,000 in gambling losses to a customer who suffered from a diagnosed gambling addiction. The ruling spotlights the responsibilities of operators when signs of problem gambling appear.

The decision contrasts sharply with legal precedent in the United States. The growing use of behavioral data, aggressive VIP marketing tactics and widespread access to online gambling has ignited international debate about the ethical and legal obligations of betting companies toward their most vulnerable customers.

A landmark ruling in Sweden

In July 2025, the Swedish Supreme Court upheld a ruling against Betsson Group’s Malta-based subsidiary, BML Group Ltd, requiring it to repay a former customer €527,395 in gambling losses. The customer had a documented gambling disorder and claimed Betsson continued to market heavily to him between 2009 and 2014, despite knowing his addiction status.

The court found that after designating the customer a VIP in 2012, Betsson ramped up personalized promotions, offered incentives and assigned dedicated staff to maintain engagement. According to the court documents, BML Group used behavioral analytics to track and target the individual, encouraging continued play even as his gambling behavior clearly met clinical criteria for gambling addiction.

The justices concluded that enforcing gambling agreements under such conditions would "violate good faith and honour," effectively deeming the contracts invalid. The ruling required Betsson not only to return the full amount lost during the VIP period but also to pay legal costs.

Do gambling companies have a duty to stop players showing signs of a gambling problem?

This case has reignited debate about the responsibility of gambling companies that use algorithms and behavioral tracking. Sweden’s ruling is narrow in scope, but its implications are broad. Should gambling operators intervene when they detect signs of harm?

In the United States, courts have consistently ruled that operators are not legally obligated to prevent individuals from gambling, even when they show signs of addiction. One of the most high-profile examples is the case of Sam Antar, who claimed that BetMGM enabled his compulsive gambling with personalized casino bonuses and high-pressure marketing. He wagered nearly $30 million over nine months.

Despite detailed allegations of targeting, Antar’s lawsuit was dismissed. Both district and appellate courts reaffirmed that New Jersey’s Casino Control Act does not impose a legal duty of care on casinos to protect problem gamblers. As a result, companies like MGM are shielded from liability, even when using sophisticated marketing tools that can identify addictive behavior.

Other U.S. cases, such as those involving Arelia Taveras in New Jersey and various lawsuits in other states, have produced similar outcomes, reinforcing the industry’s legal protection.

Evolving international expectations: Europe, Australia and elsewhere

While U.S. courts remain reluctant to stamp operators with liability, regulators in Europe and Australia are moving in the opposite direction.

• United Kingdom: The UK Gambling Commission mandates that operators use behavioral data to identify and intervene with problem gambling. Fines for failing to uphold these obligations have reached tens of millions of pounds.
  
  
  

• Australia: State regulators require licensed operators to maintain responsible gambling protocols, including mandatory staff training, player intervention policies and restrictions on marketing to individuals who have self-excluded.
  
  
  

• Sweden: Even before its 2019 Gambling Act, Swedish courts are now demonstrating that ethical standards can override regulatory gaps when operators exploit known vulnerabilities.

This international precedent could eventually push the U.S. toward stricter consumer protections as gambling becomes increasingly digital and data-driven.

How sportsbooks monitor bettors 

Modern gambling platforms are built around massive troves of real-time data. Every app open, page click, wager, deposit or loss generates insights that sportsbooks can use to shape their marketing and engagement strategies. While these same tools can identify high-risk behavior, there's little consensus on whether they’re being used to help or to harm.

A highly publicized 60 Minutes segment last year also highlighted sportsbooks’ use of AI within their platforms. Harry Levant, a leading voice on the public health impacts of online sports betting, stated, “They have access to all of the stats combined with artificial intelligence. And the ability to predict what will draw the action in.”

There are also AI-powered player risk assessment tools nowadays, but betting platforms are not required to use them. 

Help for Gambling Addiction in the U.S.

If you or someone you know is struggling with gambling addiction, specialized support is available. Birches Health provides expert, virtual care tailored for individuals struggling with gambling, sports betting or day trading. 

Take the first step toward recovery with Birches Health today:

• Call 833-483-3838
  
  

• Book a clinical assessment with a specialist
  
  

• Email hello@bircheshealth.com