Flutter Entertainment’s Paddy Power and Betfair have been fined £2 million (€2.3 million) after a UK Gambling Commission investigation found they hadn’t identified potential problem gambling quickly enough.
The probe found that customer-protection systems failed to flag clear indicators of harm quickly enough, allowing several customers to deposit large sums or gamble intensively without timely intervention, according to a UK Gambling Commission statement on Wednesday.
The regulator highlighted cases including a customer who deposited £25,000 within 25 days and another betting £86,000 over 16 days before the accounts were reviewed by staff to assess the social responsibility risk – a licensing requirement.
Betting brands licensed in the UK must watch for customers at risk of becoming problem gamblers, with indicators including spending binges, overnight betting, and long betting sessions. They must also take measures to protect those customers, such as curtailing their gambling.
“Our controls have evolved significantly and we recently introduced a next generation customer safety platform, with the vast majority of checks now happening in real-time,” said a spokesperson for Flutter in a statement, adding that the company is “confident” that the issues raised by the regulator would “not be repeated today.”
The UK gambling industry faces mounting regulatory scrutiny, with the Gambling Commission issuing a series of hefty fines, investigations and license reviews over the past few years. The crackdown reflects growing concern about money-laundering risks, consumer protection failures and illegal gambling activity. Operators are also getting squeezed by tax hikes in the British government’s latest budget.
“Operators must ensure systems to identify and address harm work effectively and at the right time,” said John Pierce, the commission’s director of enforcement. “Over-reliance on automation and failure to intervene when clear harm indicators are present exposes consumers to unnecessary risk.”
This marks the operator’s second penalty in two years, following a £490,000 fine in 2023 for marketing to vulnerable consumers. Other companies hit by recent Gambling Commission fines include Bet365 and Merkur Slots, which operates high-street gaming centres. – Bloomberg
