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

16 October 2018
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Paddy Power has been fined ₤ 2.2 m for failing to stop stolen cash being bet through its site and for stopping working to safeguard customers showing signs of issue betting.


The Gambling Commission stated the bookmaker's failings meant "significant quantities of stolen cash flowed through their exchange".


One client used money defrauded from his employer, Birmingham Dogs Home.


Paddy Power Betfair apologised and said it had actually reinforced its treatments.


The regulator stated Paddy Power Betfair's behaviour was simply not acceptable.


A Gambling Commission examination also discovered that the bookie failed to sufficiently engage with clients who were showing signs of problem gambling.


"These failings all come from one basic concept - operators should understand their customer," stated Richard Watson, Gambling Commission executive director.


"If they understand their customer and ask the right concerns then they place themselves in a strong position to fulfill their anti-money laundering and social obligation commitments."


'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 damage in the UK.


Paddy Power Betfair president Peter Jackson said: "We have a responsibility to intervene when our consumers show signs of problem gaming. In these 5 cases our interventions were ineffective and we are really sorry that this took place.


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


The commission's questions centred on five clients in 2016, consisting of 2 who were enabled to bet stolen money - one of whom had defrauded his company, Birmingham Dogs Home.


Simon Price, who was chief executive of the pet dogs home, and his wife Alayna confessed 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 given a two-year suspended term.


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


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