Paddy Power Betfair has agreed to a £2 million regulatory settlement following a UK Gambling Commission investigation that identified repeated social responsibility failings across several of its remote gambling operations. The settlement covers breaches linked to customer interaction standards and marks the second time in two years that the operator has faced enforcement action in Britain.

The investigation examined conduct at four remote operators trading under the Paddy Power and Betfair brands: PPB Entertainment Limited, PPB Counterparty Services Limited, Betfair Casino Limited, and TSE Malta LP. All four entities are owned by Flutter Entertainment and were found to have fallen short of regulatory requirements designed to identify and respond to indicators of gambling-related harm.

Customer Interaction Systems Found Lacking

The Commission’s review, carried out between April and May 2024, assessed compliance with Social Responsibility Code Provision 3.4.3, which sets expectations for how remote operators monitor player activity and intervene when risks emerge. According to the regulator, the systems in place during the review period lacked sufficient sensitivity to detect harmful patterns in a timely manner.

Several cases highlighted how high levels of spending and prolonged gambling sessions went unaddressed. In one instance, a customer deposited £12,000 over a 15-day period before the account was flagged for manual review. Another deposited £25,000 within 25 days before any interaction took place. The Commission also pointed to a case where a customer lost £12,300 across five weeks before being identified for engagement.

Additional examples showed prolonged and intense gambling activity without appropriate oversight. One customer staked £86,000 over a 16-day period and lost £6,000, yet no manual account review occurred despite the pace of spending. Another customer recorded a gambling session lasting 7 hours and 46 minutes during a 17-day period, placing more than 300 bets totalling £20,000. The account was only reviewed after a loss trigger was reached.

Regulator Highlights Timing Failures

The Commission concluded that while automated tools existed, they often failed to act at the right moment. Some indicators of risk were identified only after gambling sessions had ended, and in many cases, interactions occurred the following day rather than during active play. This delay, the regulator said, reduced the effectiveness of harm prevention measures.

In one assessment, the regulator noted that customers continued to gamble even after harm triggers were reached, including cases where deposit limits were applied without successful engagement. It said licensees should have considered stronger measures when early interactions failed.

John Pierce, Commission Director of Enforcement, said in a press release: “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. 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.”

He added: “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 exposes consumers to unnecessary risk. Where we find failings, we will act decisively to protect players.”

Flutter Entertainment acknowledged the settlement and pointed to changes made since the period under review. A company spokesperson said: “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 and there is no suggestion that any of the customers reviewed by the Gambling Commission experienced any harm.

“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. As such, we are confident that the issues highlighted by the Commission in its public statement would not be repeated today. We continue to invest in our technology and our people to raise standards in the regulated industry.”

The £2 million payment will be made in lieu of a financial penalty and will also cover investigation costs. The settlement follows a £490,000 fine imposed in 2023 after Paddy Power Betfair was found to have marketed to vulnerable consumers, including individuals who had self-excluded.

The Commission said it expects the wider industry to review the findings from this case and apply the lessons identified, warning that similar shortcomings could result in further enforcement action.