UKGC fines Fafabet operator £170,000 over unfair terms, player safeguarding failures

The UK Gambling Commission has imposed a £170,000 ($231,947) penalty on Taichi Tech Limited, the company operating under the Fafabet brand, after uncovering serious regulatory breaches linked to unfair promotional terms and shortcomings in anti-money laundering and player protection measures.

The investigation found that Fafabet’s new casino promotion terms included a clause stating: “Fafabet has the right at its own discretion to close accounts or forfeit winnings.”

The regulator determined that this discretionary power violated the fair and open licensing condition, as it lacked transparency and could result in unjust outcomes for customers.

Under the Licence Conditions and Codes of Practice (LCCP), which all gambling operators in the UK must follow, businesses are obligated to ensure their terms are clear and do not conflict with consumer protection laws, including the Consumer Rights Act 2015.

The Commission concluded that the provision breached these requirements by granting the operator discretionary unilateral control without clear justification.

Beyond the issue of unfair terms, the Commission’s probe revealed failings in Fafabet’s anti-money laundering protocols and social responsibility practices. Investigators reported instances where customers were able to wager large sums in a short span without the operator gathering sufficient information about them. 

In some cases, players who displayed potential signs of harm, such as rapid, high-value gambling, did not receive timely or adequate interventions. The review also highlighted situations where customers ignored safer gambling emails yet continued risky betting patterns without any further follow-up from Fafabet.

John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, stated: “We expect all operators — regardless of their size or customer base — to comply with consumer protection legislation and ensure their terms and conditions meet regulatory standards."

He added: “Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.”

In response to the findings, Taichi Tech Limited has accepted the Commission’s decision. It acknowledged that it had previously fallen short of expected standards and has since taken steps to address these shortcomings. 

The operator is now required to commission an independent third-party audit to verify that its anti-money laundering and safer gambling policies, procedures, and controls are effectively applied going forward.