Betfair is facing mounting pressure to hand over tens of thousands of pounds to the victim of a convicted fraudster, after an investigation revealed the betting exchange missed multiple opportunities to stop a so-called 'VIP' customer from gambling with stolen money.
A Downward Spiral and a £340,000 Fraud
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 severe gambling addiction, which saw him lose over £1 million on Betfair's platform, as a significant mitigating factor.
Internal documents seen by the Guardian indicate that Betfair, part of the £28bn Flutter Entertainment group, appeared to overlook clear signs of Morford's escalating problems, even after a staff member raised internal concerns.
Missed Red Flags and VIP Treatment
Morford's relationship with Betfair began in 2005. Despite requesting to be barred from the platform on several occasions, including a plea for permanent exclusion in 2008, he was able to continue gambling by simply opening a new account under the name "Andy". After another self-exclusion in 2010, he reactivated his account in 2012 and proceeded to lose a net £659,000 over the next five years.
His heavy losses earned him coveted VIP status, complete with a dedicated manager who offered free hospitality at major sporting events like the Cheltenham Festival and Ascot. One internal engagement was even labelled "whale catcher", referencing industry slang for high-loss gamblers.
When Betfair finally closed his account in 2017 due to concerns over his activity, Morford circumvented the ban by opening an account in his father Gordon's name. Through this account, he lost a further over £600,000, including more than £120,000 in a single five-month period in 2018. Astonishingly, Betfair internally assessed this account as only "the low end of medium risk".
Calls for Restitution and Systemic Failures
As a betting exchange, Betfair earns commission on losing bets. Analysis suggests the company may have made approximately £200,000 in commission from Morford's losses between 2018 and 2024, a period that overlaps significantly with his fraud.
His employer, the charitable housing organisation Co-operative Development Services (CDS), uncovered the fraud in 2024 and secured a £575,000 civil claim against him. While another gambling firm, SpreadEx, agreed to contribute £45,000 towards redress, Betfair has so far declined.
Jacqui Bell, criminal justice services director of the charity GamLearn, stated this case is not isolated. "We're supporting over 50 people in near-identical situations," she said, citing "repeated failures by UK-licensed operators."
In response, a Betfair spokesperson stated the company takes player safety seriously and complied with its regulatory obligations, noting that Morford had "impersonated his father on multiple calls with our teams." The company hinted it might consider divestment, saying: "We have an established divestment process, to which this case will be subject to once criminal proceedings have completed." The Gambling Commission has been informed of the case.
