Paddy Power Betfair to pay £2m for regulatory failures in the UK

• The UK Gambling Commission fined Paddy Power Betfair £2 million for social responsibility failures relating to customer interaction.
• The operator’s systems failed to identify customers displaying indicators of gambling harm on time.
• Flutter Entertainment has implemented new customer interaction and affordability policies following the compliance assessment.

Paddy Power Betfair will pay £2 million to the Gambling Commission following regulatory breaches related to social responsibility requirements.

The penalty, announced today (17 December), follows a 2024 compliance assessment that revealed failures in customer interaction systems designed to identify and address gambling harm.

Four remote operators trading under the Paddy Power and Betfair names will pay the settlement: PPB Entertainment Limited, PPB Counterparty Services Limited, Betfair Casino Limited, and TSE Malta LP.

Failures to identify harm indicators

The investigation revealed that systems were not sensitive enough to identify customers displaying concerning behaviour. In one case, a customer deposited £12,000 during a 15-day period before being identified for review. Another deposited £25,000 in 25 days before any interaction occurred.

A further customer lost £12,300 in five weeks before being identified for intervention. One customer staked £86,000 over 16 days, losing £6,000, yet no manual review of the account took place despite the high velocity of spending.

The Commission also identified a customer who displayed intense spikes in activity without interaction. Their longest session over a 17-day period lasted 7 hours and 46 minutes, during which they placed over 300 bets amounting to £20,000. The gambling behaviour was only identified as an indicator of harm after hitting a loss trigger.

Regulatory response

John Pierce, Commission Director of Enforcement, said:

“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,” Pierce said.

“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.”

The Commission noted that the licensees cooperated fully with the investigation, accepted the failings early and implemented an action plan quickly. This immediate response is the minimum expected from operators when serious shortcomings are identified.

The £2 million financial penalty will be directed toward socially responsible purposes. Flutter Entertainment has implemented changes to its customer interaction and affordability policies since the compliance assessment.

This is the second time Paddy Power Betfair has faced regulatory action. In May 2023, the operator was fined £490,000 for marketing to vulnerable consumers after sending promotional notifications to customers who had self-excluded.

Industry enforcement pattern

This enforcement action follows increased regulatory scrutiny across the UK gambling sector. The Gambling Commission has imposed substantial penalties on operators failing to meet social responsibility standards.

Recent enforcement actions include Videoslots Limited receiving a £650,000 fine in November 2025 for AML and safer gambling failures. The operator’s automated systems failed to account for initial deposits, enabling players to exceed monthly limits.

Betfred was fined £240,000 in October 2025 for online slots regulation breaches, including hosting games that celebrated losses as wins and failed to display net position accurately.

Platinum Gaming Limited, operator of Unibet and Bingo.com, received a £10 million penalty in October 2025 for social responsibility and AML breaches. This marked the second major enforcement action against the company following a £2.9 million fine in 2023.

Industry observers note that customer interaction and harm identification have become central to regulatory expectations. Operators face pressure to balance commercial objectives with robust customer protection as regulators demonstrate their willingness to use enforcement powers.

The penalty reflects growing expectations around operator systems and processes. Automated triggers alone are insufficient; operators must conduct manual reviews when customer behaviour suggests potential harm. The Commission is encouraging all gambling operators to take account of the failings identified to ensure industry learning.

Company background

Paddy Power, founded in Ireland in 1988, merged with Betfair in 2016 to create one of the world’s largest online gambling companies. The combined entity operates across multiple channels in the UK, including online sports betting, casino products and retail betting shops.

The company became part of Flutter Entertainment following a corporate restructuring in 2019. Flutter’s UK portfolio also includes Sky Betting & Gaming. The group holds a significant share of the British online gambling market, making it one of the most prominent operators under Gambling Commission oversight.