The Gambling Commission has imposed a substantial £2 million penalty on Paddy Power Betfair after an investigation uncovered significant lapses in the company's duty to protect customers displaying signs of gambling harm.
Serious Failures in Customer Protection
A compliance assessment conducted by the regulator in 2024 revealed that the betting firm's systems and processes fell far short of required standards. The investigation identified several alarming cases where the operator failed to intervene despite clear indicators of risky behaviour.
One customer deposited £12,000 over a 15-day period before their account was flagged for review, and a further £25,000 before any contact was made. In another instance, a user staked £86,000 across 16 days without their account undergoing a manual review.
"Intense Spikes" in Activity Missed
The commission highlighted a particularly concerning case where a gambler experienced intense spikes in activity. This included a single session lasting nearly eight hours over 17 days, during which they placed over 300 bets totalling £20,000. The problematic behaviour was only identified as a potential harm indicator after a specific loss trigger was activated, prompting a review.
John Pierce, the commission's director of enforcement, stated: "Our compliance assessment in 2024 uncovered examples where interactions fell far short of what is required. These failings should have never occurred."
Regulator Warns Against Over-Reliance on Automation
Pierce emphasised the critical need for gambling operators to ensure their systems identify and address potential harm effectively and at the right time. He issued a stark warning about the dangers of relying too heavily on automated processes.
"Over-reliance on automation and failure to intervene when clear harm indicators are present exposes consumers to unnecessary risk," Pierce said. "Where we find failings, we will act decisively to protect players."
The £2 million settlement will be paid by four operators under the Paddy Power and Betfair brand: PPB Entertainment, PPB Counterparty Services, Betfair Casino, and TSE Malta. All are owned by the parent company, Flutter.
Company Response and Previous Record
This marks the second recent regulatory action against the group, following a £490,000 fine in 2023 for marketing to vulnerable consumers. Pierce noted that all licensees cooperated with the latest investigation and accepted the identified failings early.
A spokesperson for Flutter's UK and Ireland business responded, stating: "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."
The spokesperson added that the company's controls have "evolved significantly" and that a next-generation customer safety platform has been introduced, with most checks now happening in real-time. They expressed confidence that the issues highlighted by the commission would not be repeated today.
