Earlier today, the UK Gambling Commission (UKGC) announced that PPB Counterparty Service Limited, t/a Paddy Power and Betfair, is issued a £490,000 fine for sending promotional content to vulnerable consumers.
The UK gambling regulator revealed that customers who had self-excluded received a push notification on the operator’s app, promoting enhanced odds on a football match from the English Premier League.
Paddy Power and Betfair Operator to Pay a Fine Due to Targeting Self-Excluded Consumers
According to the official statement of the UKGC, on 21 November 2021, Paddy Power and Betfair operator’s app distributed a promotion of enhanced odds bettors can enjoy on a football match from the English Premier League. The said offer was sent to app users, whose accounts were either registered with GAMSTOP or were self-excluded with the operator.
One of the UKGC rules for their licensees states that gambling entities are required to take proper steps to avoid the distribution of any marketing materials to self-excluded consumers. After customers apply for self-exclusion, gambling businesses have two days to remove the names and account details of these consumers from their marketing databases.
Kay Roberts, UKGC Executive Director of Operations commented on the case by saying that despite the lack of evidence that the marketing failure was intentional or all app users have seen the offer or self-excluded customers were able to gamble, the regulator was always serious about taking proper actions when such breaches happen.
Roberts also advised other operators to take this case as an example and ensure that they have taken the required measures to protect vulnerable customers and prevent the distribution of marketing materials to self-excluded accounts.
Marketing Failure Leads to a £490,000 Fine for Paddy Power and Betfair Operator
On 26 November 2021, via an LCCP notification, PPB Counterparty Services Limited notified the UKGC that it had sent a push notification advertising a betting promotion to self-excluded accounts. According to the licensee, the push notification was sent to Apple users by accident and was a result of human error.
After the Commission launched an investigation of the case, it was established that the operator was in breach of paragraphs 2 and 3 of the Social Responsibility Code Provision (SRCP). It was also concluded that the failure was considered a breach of a licence condition 82(1) of the 2005 Gambling Act.
The UKGC acknowledged that there were no complaints from customers who received the marketing materials by mistake. Furthermore, the Commission also acknowledged that the operator was quick to notify the regulator about the incident after it had occurred and took the proper actions to fix the issue.
Following the breach of the aforementioned rules, the UKGC decided to impose a financial penalty on the operator. The Licensee appealed against the fine to the First-Tier Tribunal but later agreed with the Commission to dispose of the appeal. Following the consent of the Licensee, the UKGC imposed a financial penalty of £490,000 on the operator of Paddy Power and Betfair.
After accepting the penalty, the operator also agreed to undertake an independent third-party audit of its marketing procedures. The said investigation will be at the operator’s own expense.
- Author
Daniel Williams
