In a landmark ruling by the Swedish Patent and Market Court of Appeal, Betsson, a prominent betting company, has been mandated to refund all losses the plaintiff, a man suffering from a gambling disorder. This development has significant long-term consequences and follows similar cases in other European jurisdictions.
Betsson May Face Other Such Lawsuits
According to the court’s decision, Betsson must repay all of the plaintiff’s historical spending and additional compensation for mental distress. According to the individual, Betsson engaged in extensive and aggressive marketing tactics like frequent bonuses despite being aware of his status as a problem gambler. Since this happened before the company received its Swedish license, he had little legal recourse.
Magnus Rydeving, an expert providing legal guidance to individuals affected by addiction, noted that the court’s decision, ordering Betsson to reimburse the individual, potentially sets a precedent for similar cases from other victims. In an interview for Swedish media outlet Dagens industri, he noted that the sum for this individual trial may be just the tip of the iceberg.
“It’s hundreds of millions of krona, and that’s solely what I know about. Then, of course, there’s much more out there.”
Magnus Rydeving
Betsson might face the prospect of repaying hundreds of millions of krona to affected individuals, who can use this recent ruling to improve their chances of court victory. An influx of lawsuits could significantly hinder the company, costing it valuable resources and time. Betsson can still appeal to the Swedish Supreme Court, but the company has yet to disclose its intentions.
This Development Follows Broader Industry Trends
The silver lining for Betsson is that the case specifically targets the period spanning 2014 to 2019, preceding the regulation of the Swedish gambling market. Betsson was a grey market operator in Sweden before the industry underwent formal regulation in 2019. Any customers seeking legal action against the company after 2019 will likely face a significantly more difficult court battle.
This ruling aligns with similar legal precedents established in countries like Germany, Austria, and the Netherlands, where tens of millions of euros have already been recovered from gambling companies in almost 7,000 cases, with the argument being that companies acting against the law were not entitled to profits from such activities.
Sweden’s decision underscores the increasing legal scrutiny faced by gambling companies operating in unregulated markets, setting a precedent for accountability within the industry. However, it contributes to ongoing tensions between operators and EU regulators as some jurisdictions may become unsustainable for licensed stakeholders.