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 stolen cash being gambled through its website and for stopping working to safeguard clients revealing indications of issue betting.


The Gambling Commission stated the bookmaker's failings indicated "substantial amounts of taken cash flowed through their exchange".


One customer utilized cash defrauded from his employer, Birmingham Dogs Home.


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


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


A Gaming Commission investigation also found that the bookmaker stopped working to properly connect with consumers who were showing signs of problem gambling.


"These failings all come from one simple principle - operators must know their customer," said Richard Watson, Gambling Commission executive director.


"If they understand their consumer and ask the right questions then they place themselves in a strong position to satisfy their anti-money laundering and social responsibility obligations."


'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 study, education and treatment services to lower gambling-related harm in the UK.


Paddy Power Betfair chief executive Peter Jackson said: "We have a responsibility to intervene when our customers show indications of issue gambling. In these 5 cases our interventions were not efficient and we are very sorry that this occurred.


"In the last few years, we have actually purchased a substantial program of work to reinforce our resources and systems in responsible gambling and customer protection. We are encouraged that the Gambling Commission has actually identified considerable enhancement since the time of these cases in 2016."


The commission's questions centred on five consumers in 2016, including two who were enabled to bet taken cash - among whom had actually defrauded his company, Birmingham Dogs Home.


Simon Price, who was president of the pets home, and his better half Alayna admitted 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 offered a two-year suspended term.


As part of Paddy Power's settlement with the Gambling Commission, the cash will be gone back to the pets home.


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