Introduction

Earlier this month, the High Court ruled against the popular bookmaker Paddy Power, ordering the betting giant to pay £1 million to a Gloucestershire woman after a five-year legal battle. This case has significant implications for consumer rights and the enforceability of terms and conditions in the online gaming industry.

Background

Corrine Durber played the Paddy Power game Wild Hatter in October 2020, which is described as a combination of a fruit machine and a Wheel of Fortune-style game. During the game, she was shown to have won the “Monster Jackpot” worth £1,097,132.71. However, she was paid the much smaller “Daily Jackpot” of £20,265.

Despite Mrs Durber taking a screenshot of her winning the giant sum, Paddy Power argued that there had been a glitch with the game, which directed her to the wrong prize.

However, Mrs Durber decided to take legal action and sued Paddy Power for breach of contract and for the remainder of her winnings.

Legal Arguments

Paddy Power sought to rely on their terms and conditions, arguing that they covered such discrepancies, stating that the random number generator’s results were definitive and that they were not liable for system errors.

Mrs Durber argued that this was at odds with the game’s rules, which stated that the prize would be displayed on screen. The game rules also confirmed that they took precedence over any conflicting terms.

The High Court agreed with Mrs Durber, emphasising that terms and conditions must be clear and consistent with the game’s rules. Mr Justice Ritchie stated:

“Objectively, consumers would want and expect that what was to be shown to them on screen to be accurate and correct” – basically, it should be “what you see is what you get.”

The court went further to state that the terms and conditions Paddy Power sought to rely on did not form part of the contract with Mrs Durber and that they were unfair and unenforceable under the Consumer Rights Act 2015.

As a result, Mrs Durber was awarded her winnings in full.

Lessons for Businesses Dealing with Consumers

• Ensure that terms are clear and free from legal jargon.
  
• Terms and conditions must be easily brought to the consumer’s attention.
  
• Ensure that they are fair, transparent, and comply with the Consumer Rights Act 2015.
  

It is always advisable for contracts to be drafted by legal experts. However, this is even more crucial when businesses deal with consumers, as they are often afforded additional protections under the law.

The team at Berry Smith are experts in drafting contracts for businesses that supply goods or services to consumers. If you have any questions or would like to discuss this in further detail, please contact the commercial team on 02920 345511 or at commercial@berrysmith.com.