Paddy Power Betfair Fined After Stolen Cash Is Gambled Through Its Website

16 October 2018
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Paddy Power Betfair has been fined ₤ 2.2 m for failing to stop taken money being bet through its site and for stopping working to safeguard consumers revealing signs of problem gaming.


The Gambling Commission stated the bookie's failings suggested "considerable quantities of taken money flowed through their exchange".


One client used cash defrauded from his company, Birmingham Dogs Home.


Paddy Power Betfair apologised and stated it had actually enhanced its procedures.


The regulator stated Paddy Power Betfair's behaviour was just not appropriate.


A Betting Commission examination also found that the bookmaker stopped working to adequately communicate with clients who were displaying indications of problem gambling.


"These failings all stem from one basic principle - operators must understand their consumer," said Richard Watson, Gambling Commission executive director.


"If they know their client and ask the ideal questions then they position themselves in a strong position to meet their anti-money laundering and social obligation commitments."


'Very sorry'


As part of the settlement, Paddy Power Betfair will make a ₤ 1.7 m payment to GambleAware, the independent charity that commissions research, education and treatment services to minimize gambling-related harm in the UK.


Paddy Power Betfair chief executive Peter Jackson stated: "We have a responsibility to step in when our customers reveal indications of problem betting. In these five cases our interventions were ineffective and we are very sorry that this occurred.


"Recently, we have actually invested in a substantial programme of work to reinforce our resources and in responsible gambling and client security. We are motivated that the Gambling Commission has actually identified considerable enhancement because the time of these cases in 2016."


The commission's questions centred on five customers in 2016, consisting of 2 who were permitted to bet taken cash - among whom had actually defrauded his company, Birmingham Dogs Home.


Simon Price, who was president of the dogs home, and his better half Alayna confessed cheating the charity of ₤ 894,754 to fund his gambling addiction.


Mr Price was imprisoned for five years at the end of 2017, while Mrs Price was given a two-year suspended term.


As part of Paddy Power's settlement with the Gambling Commission, the cash will be returned to the pet dogs home.


Shares in Paddy Power Betfair rose 3.4% in late trading in London.