The hugely popular Cheltenham horse racing festival starts in two weeks time. Traditionally, the Gold Cup — along with the Grand National in April — are the only two occasions when most Irish people see the inside of a bookies.
These casual gamblers went from one end of the year to the other, either ruing their losses or reliving every gallop of the win that put a few extra bob in their pockets. It was harmless fun.
Over the past decade, however, gambling has become much more mainstream. The growth of Paddy Power into one of the largest companies in the sector, has been one of the most influential factors in pushing gambling into the mainstream.
Paddy Power has skilfully exploited social media and marketing opportunities to ensure that it reaches every socio-economic cohort that would have hitherto been out of its reach.
Ten years ago, the company made a net profit of €31 million. Its last full year set of accounts for 2014 show that it made a net profit of €167 million.
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Following its recent merger with Betfair, the combined company has a market capitalisation of €11.5 billion, making it one of the biggest companies on the Irish Stock Exchange and one of the most successful indigenous firms ever.
The harsh reality is that a certain proportion of its profits are built on an unquantifiable number of problem gamblers. “Torn up ticket stubs, of one hundred thousand mugs,” as Shane MacGowan once memorably wrote about greyhound racing.
Gambling is harmless fun for many, but it’s can also be an addiction that will affect many others to varying degrees. Access to betting has never been easier. Whereas once horse racing was the main focus of punters, it is now possible to get odds on practically every event imaginable.
It is imperative that companies like Paddy Power act responsibly, otherwise the potential for abuse has very real and painful consequences.
That is why the report from Britain’s Gambling Commission, released on Monday, makes for a depressing read. Paddy Power agreed to pay £280,000 in lieu of a penalty fine as it was criticised for failings relating to three people.
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As reported in this paper yesterday, records of a Paddy Power shop manager’s interactions with a man, identified in the report as Customer A, showed that staff knew he had five jobs to fund his gambling and had no money. Customer A was being monitored by staff who believed he was a problem gambler.
“On May 20, 2014, the manager of the shop informed a more senior member of staff that Customer A would be visiting the shop less frequently. The response from the senior staff member advised the shop staff that steps should be taken to try to increase Customer A’s visits and time spent in the gambling premises,” the report states.
It was not until August 2014, when a staff member bumped into the man outside the shop and learned that he had lost access to his children and was homeless and unemployed, that there was a record of Customer A being alerted to sources of help for gambling addiction.
These were not the only examples of the company acting in a less than responsible manner.
This newspaper has also reported on how far Paddy Power goes to ensure that its customers do not get too lucky. There is ample evidence of the company closing down customer accounts when winnings exceed certain levels. There was also a high profile case involving a gambler and post officer worker who stole from his employer to fund a gambling habit involving excessive sums of money. While this man was losing vast sums, Paddy Power invited him to sports events to enjoy corporate hospitality.
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Experts have expressed concern about the normalisation of gambling, the ease of access through the internet and mobile phone apps, and the high level of advertising bookmakers pay for. During the general election Paddy Power sponsored polls that allowed its staff appear on radio stations. It also sponsored election coverage.
Paddy Power was not doing this out of a love for democracy, but rather to raise its own profile. While it may have lost money on its election bets, the bookmaker probably gained new customers. Regardless of who wins what bets, there is always just one real winner. For every €100 a gambler bets Paddy Power keeps an average of €10 and gives €90 back. We only ever hear of the lucky ones whose accumulators come in or the experts who risk big money and win bigger still. We don’t really hear about the average Joe who loses small to medium amounts on a regular basis.
Paddy Power will argue that gambling is a fun activity. A gambler is effectively buying entertainment by making a match or event more enjoyable and more interesting. The company even has a slogan that goes “when the fun stops, stop”, but while it and other bookmakers says they are committed to responsible gambling, we need an independent body to verify this.
That is why this country should have a Gambling Commission, based on the UK model and with similar teeth. The sector needs to be carefully monitored and any abusive practices have to be detected and punished.
A gambling addiction is an insidious illness that is not always apparent, even to the close family and friends of those affected. There has to be a much greater awareness about the downside of gambling, which should be funded through a levy on companies in the sector.
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Paddy Power’s marketing campaigns are often a very clever blend of the whimsy and provocative. It needs to put the same amount of thought and resources in how its operating model affects everyday lives.