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 bet through its website and for failing to secure customers revealing signs of problem gambling.
The Gambling Commission said the bookmaker's failings suggested "substantial quantities of stolen cash streamed through their exchange".
One customer used money defrauded from his employer, Birmingham Dogs Home.
Paddy Power Betfair apologised and stated it had enhanced its procedures.
The regulator stated Paddy Power Betfair's behaviour was merely not appropriate.
A Gambling Commission examination likewise discovered that the bookie failed to properly communicate with clients who were displaying signs of problem gambling.
"These failings all come from one easy principle - operators should understand their client," said Richard Watson, Gambling Commission executive director.
"If they know their client and ask the ideal questions then they position themselves in a strong position to satisfy 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 decrease in the UK.
Paddy Power Betfair president Peter Jackson stated: "We have a duty to intervene when our customers reveal signs of issue betting. In these 5 cases our interventions were ineffective and we are really sorry that this took place.
"Recently, we have invested in an extensive programme of work to enhance our resources and systems in accountable gambling and consumer protection. We are motivated that the Gambling Commission has actually recognised substantial improvement because the time of these cases in 2016."
The commission's inquiry centred on five clients in 2016, including 2 who were allowed to bet stolen money - among whom had actually defrauded his employer, Birmingham Dogs Home.
Simon Price, who was president of the pet dogs home, and his wife 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 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 dogs home.
Shares in Paddy Power Betfair rose 3.4% in late trading in London.