Fafabet operator fined £170,000 in UK over ‘unfair’ T&Cs

Great Britain’s Gambling Commission has issued a £170,000 ($231,952) fine to Taichi Tech Limited, the company behind the Fafabet brand, after ruling its terms and conditions were “unfair”.

Detailing the case, the commission flagged how Taichi Tech included a “discretionary” term in its casino bonus T&Cs. This referred to how the operator had the right to close accounts or forfeit winnings at its own discretion.

The regulator said taking this action “without clear justification” placed the Fafabet operator in breach of fair and open licensing conditions. The commission added that such terms lack transparency and could lead to unfair outcomes for consumers.

Specifically, the commission highlighted the Consumer Rights Act 2015 (CRA), the general consumer protection legislation in Britain. This is also referenced within operators’ Licence Conditions and Codes of Practice (LCCP).

Concerns also raised over AML and social responsibility

The regulator’s investigation also found failures relating to anti-money laundering (AML) and social responsibility breaches.

Offering some examples, the commission said some players were allowed to gamble large sums within a short period, despite Taichi Tech holding limited customer information.

Meanwhile, the Fafabet operator failed to take appropriate action when some customers showed signs of potential gambling harm. In addition, Taichi Tech did not follow up with players that ignored safer gambling emails sent from the operator about their behaviour.

With this, the commission settled on a £170,000 fine for the Fafabet operator. The company must also undergo a third-party audit to ensure it is implementing AML and safer gambling policies and controls.

The regulator, however, did acknowledge that the Fafabet operator accepted it fell short of expected standards for a licence-holder. It has already taken certain steps to address these issues.

“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,” said John Pierce, director of enforcement and intelligence at the commission.

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