UK Edition
Paddy Power fined £2.2m for 'failing to protect customers'
Paddy Power Betfair has been fined £2.2m for “failing to protect customers and stop stolen money being gambled”, a Gambling Commission investigation has revealed.
The Irish bookmaker was hit with a penalty for social responsibility and money laundering after it “failed to adequately interact with customers who were displaying signs of problem gambling and failed to adequately carry out anti-money laundering checks”.
The watchdog said two customers were found using Paddy Power’s betting exchange and another three were gambling using its online platform and retail premises.
Richard Watson, executive director of the Gambling Commission, said: "As a result of Paddy Power Betfair’s failings, significant amounts of stolen money flowed through their exchange and this is simply not acceptable. Operators have a duty to all of their customers to seek to prevent the proceeds of crime from being used in gambling.”
The gambling giant said it was “very sorry” and had “strengthened its systems” since the failures, which date back to 2016.
As part of the settlement, Paddy Power will return £500,000 to the affected parties and make a £1.7m payment to GambleAware, the independent charity that commissions research, education and treatment services to reduce gambling-related harm in the UK.
Peter Jackson, chief executive of Paddy Power Betfair, said: “In recent years, we have invested in an extensive programme of work to strengthen our resources and systems in responsible gambling and customer protection. This work is continuous and we are committed to working in partnership with other operators, and with the Commission, to become better and better at protecting customers.”
The penalties are the latest in a string imposed by Britain’s gambling regulator in a bid to make sure bookmakers know the source of funds for wagers and adhere to their responsibilities with respect to problem gamblers.
In February William Hill was hit with a £6.2m fine after failing to prevent 10 customers from depositing large sums linked to criminal offences which went on for nearly two years.