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Paddy Power Betfair to Pay £2.2 million

The die is cast for Paddy Power Betfair and nobody envies the operator. A lot has happened in the recent past to suggest that the agency is in trouble. From markets that are literally disappearing to the latest round of regulatory altercations in the UK and Ireland. Dangers continue to come the way of the operator.

Paddy Power Betfair’s Failure to Uphold Customer Standards

Paddy Power Betfair has just been hit with another fine over the said failure of the company to protect its most vulnerable users qualified as problem gamblers. The company also drew the ire of the UK Gambling Commission (UKG), the top watchdog in the United Kingdom, earning a fine worth £2.2 million.

According to the UKGC, Paddy Power Betfair has quite knowingly failed to protect a number of problem gamblers and has additionally allowed stolen money to be laundered on its facilities, and most notably through its betting exchange portal.

The investigation has unearthed other sub-par practices in the offer of Paddy Power Betfair, which is now facing a slew of problems that are only aggravated by the latest fine. However, the company’s chief executive, Peter Jackson, has kept a brave face acknowledging the mistake on the part of the company.

Still, Mr. Jackson hurried to point out that Paddy Power Betfair has come a long way since 2016 in improving upon customer care standards and has been complying with the latest regulation. It’s a particularly sensitive point of time to be coloring around the lines, however.

UKGC Mounts an Offense on the Country’s Bookies

Paddy Power Betfair has not been the only operator to merit a reproach and subsequently – fines. The agency is not alone, though as other UK-based companies have incurred the ire of the all-seeing regulator. Most recently, it has been Rank Group, which was hit with £500,000, though this is a paltry amount compared to the wrongdoing.

The customer who the company had failed to protect had staked £1 million. This is another highlight of the problem in meting out appropriate punishment, too. The industry has been comfortable in the knowledge that even if an oversight is allowed, the financial penalty that could come thereof would be short of the actual boons for breaking the established norms.

While Paddy Power Betfair’s Jackson has denied such intentional flouting of the established norms, suspicions still lurk. The UKGC also fined 32Red earlier this year, with a similar sum.

But back to Paddy Power, the company has really had quite a few challenges to address. Ireland has decided to double the taxation of all sports betting proceedings. The Italian market could be shutting down, following a pending 2019 piece of legislation that will effectively ban all forms of gambling advertisement, including sports betting.

As a result, Paddy Power Betfair is suffering major financial downturn in two of its bastions. Not to mention that the operator has not managed to achieve a meteoric growth as it had expected in the United States, where its operations have been crawling rather than advancing by leaps and bounds.

Julie Moraine

With 4 years experience as an analyst, Julie—or ‘Jewels’, as we aptly refer to her in the office—is nothing short of a marvel-worthy in her attention to the forex and cryptocurrency space as she quickly became the first pick to co-pilot education to the masses with Mike.