Paddy Power Betfair Pays £2m After Customer Protection Failures

A UK Gambling Commission review has ended with a costly outcome for Paddy Power Betfair. After examining customer interaction controls earlier in 2024, the regulator moved forward with a multi million pound settlement tied to social responsibility failures.

Good to Know

• Four remote gambling entities fall under the settlement
• Reviews found delayed responses to high risk gambling behavior
• The case follows a prior enforcement action in 2023

Regulator Flags Customer Interaction Failures

The UK Gambling Commission ordered a £2 million payment after an investigation conducted between April and May 2024. Four licensed operators trading as Paddy Power and Betfair agreed to the settlement: PPB Entertainment Limited, PPB Counterparty Services Limited, Betfair Casino Limited, and TSE Malta LP.

The case focused on breaches of Social Responsibility Code Provision 3.4.3, covering remote customer interaction rules. Regulators found failures across several required standards within the Licence Conditions and Codes of Practice.

According to the Commission, existing monitoring systems failed to act quickly enough when clear risk signals appeared. One customer deposited £12,000 in just 15 days before any review began. Another deposited £25,000 over 25 days without timely interaction.

Additional examples raised further concern. One customer lost £12,300 in five weeks before safeguards triggered. Another staked £86,000 across 16 days while losing £6,000, yet no manual review occurred despite the pace of activity.

In a separate case, a customer placed more than 300 bets totaling £20,000 during a single session lasting nearly eight hours. Risk markers only surfaced after a preset loss trigger, prompting a delayed manual check.

The Commission noted that Paddy Power Betfair acknowledged the shortcomings early and implemented corrective steps while cooperating throughout the process. Still, regulators described the failures as serious due to their impact on consumer protection.

John Pierce, Commission Director of Enforcement, said:

“This £2 million settlement reflects the seriousness of the failings identified and the importance of meeting social responsibility and customer interaction standards.

“Our compliance assessment in 2024 uncovered examples where interactions fell far short of what is required. These failings should never have occurred.”

Pierce added:

“While the licensees co-operated fully with the investigation, accepted the failings early, and implemented an action plan quickly, this immediate response is the minimum we expect from operators when serious shortcomings are identified.

“Operators must ensure systems to identify and address harm work effectively and at the right time. Over-reliance on automation and failure to intervene when clear harm indicators are present expose consumers to unnecessary risk. Where we find failings, we will act decisively to protect players.”

The regulator encouraged other operators to study the findings and adjust internal controls. The settlement also includes payment toward investigation costs and marks the second enforcement action involving Paddy Power Betfair, following a £490,000 penalty issued in 2023 for marketing to vulnerable consumers.

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