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 stopping working to stop taken cash being gambled through its site and for stopping working to safeguard clients showing signs of issue betting.
The Gambling Commission said the bookie's failings implied "considerable amounts of stolen money flowed through their exchange".
One client utilized money defrauded from his employer, Birmingham Dogs Home.
Paddy Power Betfair apologised and said it had strengthened its treatments.
The regulator stated Paddy Power Betfair's behaviour was simply not appropriate.
A Gambling Commission also discovered that the bookie stopped working to sufficiently engage with clients who were showing signs of issue gambling.
"These failings all come from one basic concept - operators need to understand their consumer," said Richard Watson, Gambling Commission executive director.
"If they know their consumer and ask the right questions then they put themselves in a strong position to meet 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 study, education and treatment services to reduce gambling-related damage in the UK.
Paddy Power Betfair president Peter Jackson said: "We have an obligation to step in when our clients reveal signs of problem betting. In these five cases our interventions were not reliable and we are extremely sorry that this happened.
"Over the last few years, we have invested in an extensive program of work to reinforce our resources and systems in responsible gambling and customer protection. We are encouraged that the Gambling Commission has acknowledged considerable improvement considering that the time of these cases in 2016."
The commission's questions centred on 5 clients in 2016, including 2 who were enabled to bet stolen cash - among whom had actually defrauded his employer, Birmingham Dogs Home.
Simon Price, who was president of the pet dogs home, and his other half Alayna confessed cheating the charity of ₤ 894,754 to fund his gambling addiction.
Mr Price was imprisoned for 5 years at the end of 2017, while Mrs Price was offered a two-year suspended term.
As part of Paddy Power's settlement with the Gambling Commission, the cash will be gone back to the pets home.
Shares in Paddy Power Betfair increased 3.4% in late trading in London.