The widow of Luke Ashton, a gambling addict who took his own life in April 2021 after falling £18,000 into debt, filed a legal claim on Thursday against Betfair in the UK High Court, alleging the company was negligent in failing to protect him. The case seeks damages of £846,478 and could set a landmark precedent by establishing that betting firms owe a duty of care to customers exhibiting signs of problem gambling.

According to the claim, Ashton, 40, from Leicester, suffered from a gambling disorder that led him to place thousands of bets with Betfair. He signed up for temporary self-exclusions from gambling with the company three times, but returned to betting each time they ended, ultimately losing £21,777 over three years. In March 2021, the month before his death, he placed more than 1,000 bets while furloughed during the pandemic and made a net loss of £5,500. The volume of promotional “free” bets he received from Betfair also increased during this period, lawyers for the Ashton family said.

Lawyers from Leigh Day, representing the family, argue that Betfair breached its duty of care by failing to intervene as Ashton’s losses mounted despite clear signs of problem gambling. They say the company’s failure to act rendered it liable for his death. Previous similar claims seeking to hold gambling firms liable for failing to prevent large losses by problem gamblers have failed, but the Ashtons’ case could pave the way for millions of pounds in new claims against an industry that earned more than £12bn from British customers last year.

In its defence submitted to the High Court, Betfair, which is part of Flutter, a £13bn international gambling firm, denied it owed Ashton any duty of care. The company said Ashton had not informed it he had a gambling disorder and that his financial losses were caused by his “own contributory negligence” and external mental health factors. Betfair’s lawyers also argued that Ashton would have lost the money with another operator if he had not done so with Betfair, and said the company had rigorous safer gambling checks in place.

A 2023 inquest into Ashton’s death heard that he left notes for his wife and children that twice mentioned gambling and admitted he had “demons.” The coroner criticised Betfair for its part in the death, noting that “more efforts to intervene or interact should have been made.”

A spokesperson for Flutter said: “We reiterate our sincere condolences to Mrs Ashton and her family over this tragic case. Unfortunately, we are unable to comment further at this time because of the legal proceedings.”

An estimated 1.4 million adults in Britain have a gambling problem, according to a study for the Gambling Commission last year that used a new methodology leading to a higher estimate. The outcome of the High Court case is expected to be closely watched by campaigners, the gambling industry, and regulators.