Paddy Power Betfair to pay £2m after failing to protect users
Paddy Power Betfair is set to pay £2m to the gambling watchdog as part of a regulatory settlement after failing to protect users who showed concerning betting behaviours.
The Gambling Commission said a compliance assessment last year revealed lapses in social responsibility from Paddy Power falling short of requirements.
PPB Entertainment, PPB Counterparty Services, Betfair Casino and TSE Malta are the four operators under the Paddy Power and Betfair brand, owned by Flutter, that will pay the settlement.
“This £2m settlement reflects the seriousness of the failings identified and the importance of meeting social responsibility and customer interaction standards,” John Pierce, commission director of enforcement at the Gambling Commission, said.
The failures identified include the gambling firm’s system not identifying indicators of harm in consumers after one deposited £12,000 during a 15-day period before being identified for review, and another £25,000 before receiving contact.
Systems also missed identifying high volumes of spend, with one user staking £86,000 over a 16-day period, with no manual review of the account.
Paddy Power Betfair ‘fell far short’
One user identified in the assessment experienced “intense spikes” in activity without interaction, with the longest session over a 17-day period, nearly eight hours, during which over 300 bets totalling £20,000 were placed.
The behaviour was identified as an indicator of harm only after a loss trigger was hit, resulting in the account being reviewed.
“Our compliance assessment in 2024 uncovered examples where interactions fell far short of what is required,” Pierce said.
“These failings should have never occurred.”
He added operators should ensure systems identify and address harm work “effectively and at the right time” as he warned on the risk of automation.
“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.”
It marks the second regulatory action against Paddy Power Betfair, following a £490,000 fine in 2023 after the watchdog found it was marketing to vulnerable consumers.
Pierce said all licensees cooperated with the investigation and accepted the failings early.
A spokesperson for Flutter’s UK and Ireland business 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.”