The UK’s Gambling Commission (UKGC) has fined Paddy Power Betfair GBP 2 million (about $2.68 million) after the gambling watchdog found that the gambling company did not act swiftly enough when customers were displaying concerning betting behaviors.
Paddy Power Betfair Fined for Gambling Responsibility Failures
Four operators trading under the Paddy Power and Betfair brands (PPB Entertainment, PPB Counterparty Services, Betfair Casino, and TSE Malta) will collectively pay the fine as part of the settlement. The Gambling Commission said a compliance assessment carried out last year identified social responsibility failings at the company, with customer interactions found to have fallen far short of the required standards.
John Pierce, the Gambling Commission’s director of enforcement, said the GBP 2 million settlement underlined the seriousness of the shortcomings identified and highlighted the importance of operators meeting required social responsibility and customer interaction standards. He said the failings should never have occurred. He noted that, while the licensees cooperated fully with the investigation, such actions represent only the minimum expected response when serious deficiencies are uncovered.
Mr Pierce added that operators must ensure their systems for identifying and addressing gambling-related harm operate effectively and at the appropriate time. He further warned that excessive reliance on automated processes and a failure to intervene when clear indicators of harm are present place consumers at unnecessary risk.
What Triggered the UKGC’s Investigation?
There were a few instances of irregular betting patterns that gained the attention of the gambling watchdog and subsequently prompted the UKGC to launch an investigation. In one instance, Paddy Power Betfair failed to intervene even though a customer staked GBP 86,000 (approximately $108,000) over 16 days, losing GBP 6,000 (around $7,500). A manual review was only carried out once the losses had escalated.
In another case, the operator did not act promptly when a gambler engaged in prolonged and intense betting activity, including a single session lasting a bit less than eight hours, during which more than 300 bets were placed, amounting to GBP 20,000 (about $25,000).
A spokesperson for Flutter, which owns Paddy Power, said that the company takes its safer gambling responsibilities extremely seriously and believes it leads the industry in player protection. The spokesperson added that customer safety is the company’s top priority and that there is no indication that any of the customers reviewed by the UKGC suffered harm. They also said the company’s safeguards have evolved significantly, noting the recent introduction of a next-generation customer safety platform, with most checks now carried out in real time.