Earlier last month, Paddy Power Betfair (PPB) received a £2.2 million fine. According to sources, a few bad customers used stolen money to gamble on PPB. Also, the company received a fine for not challenging some of its customer’s gambling behaviours. But, can you really blame PPB for the actions of somebody else? That’s what we would like to discuss here. So without further ado, let’s look into this case and see what went wrong for the well-established British brand.
According to the UK Gambling Commission (UKGC), PPB failed to interact with customers who displayed poor gambling behaviours. Also, the UKGC claimed PPB failed to carry out anti-money laundering (AML) checks. As a result of this penalty, PPB received a £2.2 Million fine!
These are the facts, although this didn’t affect PPB’s performance on the London Stock Exchange. Which, is a clear sign that the allegations of the UKGC didn’t faze investors. Also, PPB will need to pay back a portion of the stolen money! Not to mention, PPB will have to pay regulators £1.7 Million! Furthermore, they’ll have to pay £50k to cover the cost of the investigation conducted by the UKGC. Ouch!
Was the Penalty Fair or Not?
So it looks like one bad apple didn’t spoil the whole bunch. Which, should come as good news to PPB. Unfortunately, PPB still has to pay the price for these bad apples! Even though from a logical point of view, with all the new AML procedures in place. The offenders should perhaps have been caught in the act much sooner than they were. And this might be the news all provider should take learning from. Play by the rules, and you are safe!
Yes, we understand some poor gambling habits were being displayed by a few customers that went unchecked. But let’s face the facts, sometimes these things pass thru the safety net. So even if PPB got fined, they’re still a reliable brand. Even more so now that their AML procedure have tightened up!