Paddy Power have signed a controversial partnership agreement with ClearStake, the banking verification specialists. As part of the agreement, Paddy Power shop staff will be able to verify the financial details of their retail customers via their banking apps.
But critics of the deal claim that the Irish firm are simply bringing their detested affordability checks and ‘proof of funds’ rules into the retail environment. And with the UK government protecting the high street sector in their damaging autumn budget, there’s a feeling that tighter regulation – particularly when it comes to background checks on punters – is now more likely.
ID by Bank
UK licensed operators are required to ID their users as part of the Know Your Customer (KYC) scheme. As a general rule, such checks have been more prolifically undertaken online than in high street betting shops, where players – in some cases – have been able to circumnavigate the verification process. However, in Paddy Power shops at least, that could become a thing of the past as they roll out ClearStake’s ‘ID by Bank’ technology.
The system requires the user to effectively hand over their financial details via a banking app on their phone, providing Paddy Power with instant access to their account details. The firm can then confirm their identity, while simultaneously performing a ‘source of funds’ check.
However, opponents of the scheme are concerned that by offering access to their banking app, they are allowing for sensitive information – such as where they spend their money and how much – to be shared with Paddy Power. The Flutter brand will be the first betting shop empire to roll out ID by Bank, although if the scheme is successful is almost a certainty that other firms will introduce something very similar in their shops too.
The CEO of ClearStake, Martin Burt, commented:
The same challenges exist in retail as they do online. This rollout shows how digital verification can enhance compliance and efficiency in physical venues, not just online. A big thank you to the teams at Paddy Power for their collaboration and openness to innovation as we bring bank-based ID into retail for the first time.
In an era of mass betting shop closures, will the streamlined verification process appeal to customers, or will the invasion of their financial activity push even more to the black market?
Dart Hoping to Hit the Bullseye
Whether the new ID system is a win for Paddy Power, or whether it causes too much ‘friction’ for their customers, only time will tell. But one man is very much in the pro-Flutter camp… and has doubled down by investing a staggering $5.65 billion (around £4.2 billion) into the company.
Kenneth Dart is the billionaire businessman and investor famed for the Dart Company, who happen to be the world’s largest manufacturer of disposable food containers, cups, plates and bowls. It’s made Dart a good living – his net worth is a rumoured $13.2 billion (£9.7 billion), and it’s said that he owns more land in his adopted home of the Cayman Islands than anybody else.
Said to be reclusive and secretive, little is known about Dart – apart from his extraordinary shareholding in Flutter Entertainment. In September 2025, it emerged that Dart owned 5% of all shares in Flutter. But it has now been revealed that his holding has since been expanded to 15% via two of his investing vehicles: Lake Michigan Ltd and LBS Ltd.
All of which means that Dart is the now the single largest private shareholder in the Paddy Power and Betfair operator, having doubled down on his belief that they will have a bright future to the tune of £4.2 billion. It’s a remarkable investment when you consider that Flutter’s stock has fallen by a staggering 57.8% over the past six months, with 42.9% of that downturn coming in 2026 alone.
Perhaps Dart is a believer in the ‘buy low, sell high’ maxim, although investor confidence in Flutter – and the UK gambling industry as a whole – has not been strong for a long time… and even less so since Rachel Reeves’ bombshell tax announcement in November.
With that tax grab and a revised earnings call, which saw Flutter downgrade their 2025 EBITDA by some £281 million due to what it described as ‘customer friendly sports results.’ Dart, who also has a considerable shareholding in online casino firm Evolution, will be hoping that business picks up rather sharpish after what have been rather challenging times since he invested in Flutter.