Paddy Power Betfair fined £2 million for breaches of UK social responsibility rules

Flutter Entertainment-owned Paddy Power and Betfair have committed to a £2 million regulatory payment following a UK Gambling Commission review that uncovered significant lapses in safeguarding at-risk gamblers across multiple platforms.

A compliance check conducted in spring 2024 targeted four licensed entities: PPB Entertainment Limited, PPB Counterparty Services Limited, Betfair Casino Limited, and TSE Malta LP. Investigators determined these operators violated key sections (paragraphs 1, 4, 7, 8, and 11) of the Social Responsibility Code Provision 3.4.3 within the Licence Conditions and Codes of Practice.

Weaknesses in Detecting and Preventing Gambling Harm

The main problems stemmed from monitoring tools that weren't responsive enough to spot early warning signs of potential harm. British regulations mandate ongoing surveillance of player behavior starting from account creation, with prompt responses to red flags such as fast-paced spending, late-night sessions, deposit surges, or shifts in wagering habits.

Specific incidents revealed significant delays: One Betfair player made £12,000 in deposits across 15 days without triggering a staff review or direct contact. Another accumulated £25,000 in deposits over 25 days before any action. A different case saw a gambler lose £12,300 over five weeks; although flagged eventually, the outreach failed, resulting only in a modest £500 monthly deposit cap while betting continued unrestricted.

Regulators stressed that more decisive measures — like temporarily blocking deposits pending successful contact — were warranted right when alerts were activated.

Delays in Addressing High-Risk Betting Patterns

Additional violations involved slow escalation of obvious risk signals to human oversight, with automated systems frequently overlooking or postponing alerts for intense play.

In one instance, a Betfair user wagered £86,000 in roughly 18 days, incurring £6,000 in losses, yet no staff intervention occurred — limited to just four automated notifications. Another account exhibited dramatic activity surges, including a marathon session of almost eight hours featuring more than 300 wagers totaling £20,000, but manual checks only happened after a separate loss threshold was crossed.

Alerts often processed post-session (typically the following day), and substantial overnight wagering escaped immediate scrutiny. The Commission highlighted excessive dependence on automated tools, which unnecessarily endangered players.

Commission's Assessment and Company Cooperation

While noting the operator's prompt acknowledgment of issues, complete collaboration during the probe, and rapid rollout of improvements, the Gambling Commission underscored the gravity of these oversights in protecting susceptible individuals.

John Pierce, the Commission's enforcement director, stated: “This settlement highlights how vital robust customer interaction protocols are. Excessive trust in automation, combined with sluggish responses to evident harm signals, leaves players vulnerable to avoidable dangers. We expect proactive, effective harm prevention at all times.”

This represents the second sanction for the group in recent years, after a £490,000 penalty in 2023 related to promotional materials sent to self-excluded users. The current payment covers investigative expenses and serves as an alternative to a standard fine.

We recently reported that NetBet was ordered to pay £650,000 for AML and social responsibility failures in the UK. This case once again shows how closely UK regulators monitor the gambling sector and enforce compliance rules.