Paddy Power Betfair Fined After Stolen Cash Is Gambled Through Its Website
16 October 2018
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Paddy Power Betfair has actually been fined ₤ 2.2 m for failing to stop stolen money being gambled through its site and for failing to secure customers revealing indications of problem betting.
The Gambling Commission stated the bookmaker's failings meant "significant quantities of stolen money flowed through their exchange".
One consumer used cash defrauded from his company, Birmingham Dogs Home.
Paddy Power Betfair apologised and said it had strengthened its procedures.
The regulator stated Paddy Power Betfair's behaviour was merely not acceptable.
A Betting Commission examination also discovered that the bookie failed to sufficiently interact with clients who were showing indications of problem gambling.
"These failings all originate from one basic concept - operators need to understand their client," said Richard Watson, Gambling Commission executive director.
"If they understand their consumer and ask the best questions then they position themselves in a strong position to fulfill their anti-money laundering and social responsibility obligations."
'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, and treatment services to minimize gambling-related harm in the UK.
Paddy Power Betfair chief executive Peter Jackson stated: "We have a responsibility to intervene when our consumers show indications of issue betting. In these 5 cases our interventions were ineffective and we are very sorry that this took place.
"Over the last few years, we have purchased a comprehensive programme of work to strengthen our resources and systems in responsible gaming and client protection. We are encouraged that the Gambling Commission has recognised substantial improvement considering that the time of these cases in 2016."
The commission's inquiry centred on 5 clients in 2016, consisting of 2 who were enabled to gamble stolen cash - among whom had defrauded his company, Birmingham Dogs Home.
Simon Price, who was chief executive of the dogs home, and his other half Alayna admitted cheating the charity of ₤ 894,754 to fund his betting 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 money will be returned to the pet dogs home.
Shares in Paddy Power Betfair rose 3.4% in late trading in London.