Paddy Power Betfair fined after stolen money is bet through its site
16 October 2018
Paddy Power Betfair has been fined ₤ 2.2 m for failing to stop stolen cash being gambled through its site and for failing to secure customers showing indications of problem gambling.
The Gambling Commission stated the bookie's failings meant "significant quantities of taken money flowed through their exchange".
One customer utilized money defrauded from his company, Birmingham Dogs Home.
Paddy Power Betfair apologised and said it had actually strengthened its treatments.
The regulator stated Paddy Power Betfair's behaviour was merely not appropriate.
A Gaming Commission examination, external likewise discovered that the bookie failed to adequately communicate with customers who were displaying indications of issue gambling.
"These failings all come from one simple principle - operators need to 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 meet their anti-money laundering and social duty commitments."
'Very sorry'
As part of the yohaig code 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 minimize gambling-related harm in the UK.
Paddy Power Betfair chief executive Peter Jackson said: "We have a responsibility to step in when our consumers show indications of issue gambling. In these 5 cases our interventions were not effective and we are really sorry that this promotion code took place.
"In the yohaig code last few years, we have actually bought a substantial programme of work to strengthen our resources and systems in accountable gaming and customer protection. We are encouraged that the Gambling Commission has recognised substantial improvement because the time of these cases in 2016."
The commission's query centred on five clients in 2016, including two who were allowed to gamble stolen cash - one of whom had defrauded his employer, Birmingham Dogs Home.
Simon Price, who was primary executive of the canines home, and his other half Alayna admitted cheating the charity of ₤ 894,754 to money his gambling addiction.
Mr Price was imprisoned for 5 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 gone back to the canines home.
Shares in Paddy Power Betfair increased 3.4% in late trading in London.
William Hill fined for lax criminal controls
20 February 2018
