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

16 October 2018
ShareSave


Paddy Power Betfair has been fined ₤ 2.2 m for failing to stop stolen cash being gambled through its site and for stopping working to secure consumers revealing indications of issue gaming.


The Gambling Commission stated the bookmaker's failings implied "significant amounts of stolen money flowed through their exchange".


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


Paddy Power Betfair apologised and said it had strengthened its treatments.


The regulator said Paddy Power Betfair's behaviour was just not acceptable.


A Betting Commission examination also found that the bookmaker failed to adequately connect with clients who were showing signs of problem gambling.


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


"If they understand their consumer and ask the ideal questions then they put themselves in a strong position to meet their anti-money laundering and social obligation obligations."


'Very sorry'


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


Paddy Power Betfair president Peter Jackson said: "We have an obligation to step in when our clients reveal indications of problem gambling. In these 5 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 enhance our resources and systems in responsible gambling and customer security. We are motivated that the Gambling Commission has acknowledged substantial enhancement considering that the time of these cases in 2016."


The commission's inquiry centred on 5 customers in 2016, consisting of two who were permitted to gamble stolen cash - one of whom had actually defrauded his company, Birmingham Dogs Home.


Simon Price, who was primary executive of the canines home, and his wife Alayna confessed cheating the charity of ₤ 894,754 to fund his gambling dependency.


Mr Price was imprisoned for 5 years at the end of 2017, while Mrs Price was provided a two-year suspended term.


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


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