Paddy Power Clinches ID Deal To Boost Retail Betting Experience

Paddy Power has reportedly tried to stave off the headwinds faced by retail betting by agreeing a collaboration with ClearStake. The open banking platform, authorised by the Financial Conduct Authority (FCA), helps improve player verification through digital banking as a method, and it is an essential part of customer due diligence.

While there has been a trend of more UK-based players taking their betting activity online, there are still many who prefer to use traditional land-based venues. And the ClearStake pact is designed to ensure that Paddy Power can still meet the demands of players who prefer to visit brick-and-mortar establishments.

Making banking more impactful

In fine-tuning the verification process in the land-based sector, it is hoped Paddy Power will make the Know Your Customer (KYC) more frictionless.

Paddy Power has recognised the need to shake up the retail betting experience, and ClearStake CEO, Martin Burt, also referred to this when outlining the contours of the deal.

He said:

“The same challenges exist in retail as they do online, and ClearStake provides a proven way to address them. This rollout shows how digital verification can enhance compliance and efficiency in physical venues, not just online.

“We’re proud to be supporting innovation in retail verification and look forward to seeing how bank-based ID continues to evolve across the UK market.”

Paddy Power doing its best to recalibrate

In testing UK market conditions, Paddy Power is doing its best to pivot. Of course, traditional banking and identification have moved on in recent times, but previously, Paddy Power warned of UK shop closures.

Back in October, Flutter Entertainment, the parent company of Paddy Power, confirmed that 57 shops would shut across the UK and Ireland. It was suggested that as many as 247 jobs would be at risk, but Paddy Power isn’t alone.

Last month, William Hill confirmed that shop closures would be inevitable, despite the positive set of financial results that were published. A company statement read:

“As a result of these significant UK tax increases, the board is assessing its strategic options, with a resolution, with a resolute focus on maximising shareholder value.”

Working through budget uncertainty

The budget has undeniably thrown up plenty of challenges for online operators that have a strong retail betting presence. Indeed, it was confirmed by the Chancellor Rachel Reeves in November that Remote Gaming Duty (RGD) paid on online casino betting will jump from 21% to 40% this April.

Meanwhile, duty paid on online sports betting will soar from 15% to 25% as of April 2027, representing a body blow for bookmakers. Given also the changes that the United Kingdom Gambling Commission (UKGC) have been rolling out over the past few months, there are plenty of things that need addressing.

Will others follow in Paddy Power’s footsteps?

Paddy Power’s idea isn’t exactly novel or uncharted territory. Other operators, such as bet365, have introduced Pay by Bank in land-based settings to streamline the age verification process and promote safer gambling. Nonetheless, Paddy Power’s deal is still timely.

Of course, it will be fascinating to see how the tech is ruled out, as sometimes there can be niggles or teething issues, but perhaps Paddy Power’s collaboration might inspire a movement. The versatility of the product could prove its worth, and this was mentioned by ClearStake.

The company added:

“This deployment sits alongside ClearStake’s existing affordability and source-of-funds solutions, demonstrating how bank-based verification can support operators across multiple touchpoints.”