Betfair, the prominent betting exchange, is facing urgent calls to hand over tens of thousands of pounds to the victim of a fraudster, after a Guardian investigation revealed it appeared to miss multiple opportunities to stop a so-called 'VIP' customer from gambling with stolen money.
A Downward Spiral and Missed Red Flags
Andrew Morford, a former finance manager, received a two-year suspended sentence on Wednesday after admitting to defrauding his former employer of £340,000 between May 2019 and February 2024. In sentencing, Judge Silas Reid cited Morford's gambling addiction, which saw him lose over £1 million on Betfair, as a "very significant mitigation factor".
Internal documents suggest Betfair, part of the £28bn Flutter Entertainment group, overlooked clear signs of Morford's crisis. This was despite an internal staff member raising concerns. Morford had a long history with the platform, dating back to 2005, and had requested to be barred from gambling several times, including a plea for permanent exclusion in 2008.
However, he was able to circumvent this by simply opening a new account under the name "Andy". After self-excluding again in 2010, he reversed the decision in 2012 and proceeded to lose a net £659,000 over the next five years.
The 'VIP' Treatment and a 'Whale Catcher'
Morford's heavy losses earned him coveted 'VIP' status. He was assigned a dedicated manager who offered him free hospitality at major events like the Cheltenham Festival and Ascot. One staff engagement in the records was even labelled "whale catcher", using industry slang for high-loss gamblers.
Betfair closed his account in 2017 due to concerns about his activity, but Morford then began gambling using an account in his father Gordon's name. Through this account, he lost over £600,000, including more than £120,000 in a single five-month period in 2018. Astonishingly, Betfair internally assessed this account as the "low end of medium risk".
As a betting exchange, Betfair profits by taking commission from winning bets. Analysis indicates the company may have made approximately £200,000 in commission from bets Morford lost between 2018 and 2024, a period that overlaps significantly with his fraud.
Clear Warnings Ignored and Calls for Restitution
Betfair also failed to act on obvious signs that Morford was operating his father's account. In August 2022 and again in March 2023, he signed emails to the account's VIP manager with his own name, 'Andrew'. After the second instance, an employee flagged that Morford had a history of self-exclusion, writing: "I have not actioned or made any changes to the customer account but feel it necessary to raise my concerns." No action was taken, and Morford continued to deposit and lose vast sums.
His employer, the charitable housing organisation Co-operative Development Services (CDS), uncovered the fraud in 2024. It has secured a £575,000 civil claim against Morford, partially paid using his pension and his share of the family home. Another firm, SpreadEx, agreed to provide £45,000 to CDS. Betfair has so far declined to contribute.
Jacqui Bell of the charity GamLearn, which supports gambling addicts who have committed crimes, said: "Sadly, Andrew Morford’s case is not an isolated one. We’re supporting over 50 people in near-identical situations." She cited "repeated failures by UK-licensed operators".
In response, Betfair stated it has an "established divestment process" for such cases once criminal proceedings conclude. A spokesperson said the company takes player safety seriously, complied with regulations, and has referred the case to the Gambling Commission. They claimed Morford had "impersonated his father on multiple calls", including during safer gambling interactions.
