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 bet through its site and for stopping working to safeguard clients showing indications of problem gambling.
The Gambling Commission said the bookmaker's failings meant "substantial amounts of taken money flowed through their exchange".
One consumer used cash defrauded from his company, Birmingham Dogs Home.
Paddy Power Betfair apologised and said it had reinforced its procedures.
The regulator said Paddy Power Betfair's behaviour was merely not appropriate.
A Betting Commission examination likewise found that the bookmaker failed to properly connect with clients who were displaying indications of problem gaming.
"These failings all come from one simple concept - operators must know their consumer," stated Richard Watson, Gambling Commission executive director.
"If they understand their customer and ask the best concerns 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 to reduce gambling-related damage in the UK.
Paddy Power Betfair president Peter Jackson said: "We have an obligation to step in when our consumers reveal indications of issue gaming. In these 5 cases our interventions were not effective and we are really sorry that this took place.
"In the last few years, we have actually purchased a substantial program of work to enhance our resources and systems in responsible gaming and consumer security. We are encouraged that the Gambling Commission has acknowledged substantial improvement given that the time of these cases in 2016."
The commission's inquiry centred on five customers in 2016, consisting of 2 who were permitted to bet taken money - among whom had defrauded his employer, Birmingham Dogs Home.
Simon Price, who was president of the pet dogs home, and his partner Alayna confessed 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 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 pets home.
Shares in Paddy Power Betfair increased 3.4% in late trading in London.