The UK Gambling Commission (UKGC) has slapped a £2 million fine on Paddy Power Betfair after evaluating the group’s social responsibility measures last year.
Four operators trading under the banners of Paddy Power and Betfair have agreed to the penalty after the industry watchdog discovered several regulatory failures.
The investigation details a number of situations where the operators should have been quicker to act.
Among the examples is a customer who amassed losses of £12,300 in five weeks before they were reached out to.
Another placed 300 bets totalling £20,000 on the same day before being flagged as needing help.
The UKGC’s report concluded the firms were not acting quickly enough to help customers who were engaging in harmful gambling.
The four Flutter-owned licensees who will pay the Commission’s fine are:
- PPB Entertainment Limited
- PPB Counterparty Services Limited
- Betfair Casino Limited
- TSE Malta LP.
Paddy Power Betfair’s Social Responsibility Failures
The report quotes one example where a customer gambled £86,000 in just over two weeks without any manual review.
Another placed over 300 bets amounting to £20,000 in a session lasting nearly eight hours before activating a loss trigger.
One Betfair customer lost £12,300 in five weeks before being identified for an interaction.
There were also instances of users depositing large sums without a review being triggered for at least a fortnight.
That included a customer who deposited £25,000 on Betfair during a 25-day period before being interacted with.
Another Betfair user deposited £12,000 in 15 days before review.
Paddy Power Betfair was fined £490,000 in 2023 by the UKGC for regulatory breaches.
It was found to have sent push notifications to users who had excluded themselves from receiving promotions.
UKGC Blames Over-Reliance On Automated Systems
“This £2 million settlement reflects the seriousness of the failings identified and the importance of meeting social responsibility and customer interaction standards,” said Commission Director of Enforcement, John Pierce.
“Our compliance assessment in 2024 uncovered examples where interactions fell far short of what is required.
“These failings should never have occurred.
“While the licensees co-operated fully with the investigation, accepted the failings early, and implemented an action plan quickly, this immediate response is the minimum we expect from operators when serious shortcomings are identified.
“Operators must ensure systems to identify and address harm work effectively and at the right time.
“Over-reliance on automation and failure to intervene when clear harm indicators are present exposes consumers to unnecessary risk.
“Where we find failings, we will act decisively to protect players.”
Flutter’s Response To The UKGC’s Findings
Flutter-owned Paddy Power is presently enjoying some prime television exposure as sponsor of the World Darts Championship.
A spokesperson for Flutter UK and Ireland said: “Flutter takes its safer gambling responsibilities incredibly seriously and we firmly believe that we lead the industry in player protection.
“Customer safety is our number one priority and there is no suggestion that any of the customers reviewed by the Gambling Commission experienced any harm.
“Our controls have evolved significantly and we recently introduced a next generation customer safety platform, with the vast majority of checks now happening in real-time.
“As such, we are confident that the issues highlighted by the commission in its public statement would not be repeated today.”
