• UK watchdog fines Fafabet over AML and T&Cs compliance failures
• The regulator pointed out the unfairness of the terms
• Similarly, the watchdog said that Fafabet had failed to intervene in certain cases of consumer harm

The UK Gambling Commission has issued enforcement action against Taichi Tech Limited, trading as Fafabet, and fined the company ￡170,000 for what the regulator said were unfair terms and conditions.

Fafabet faces a stiff penalty over regulatory shortcomings

The fairness of terms and conditions, whether they concern the bonus rules or the casino’s general terms page, is an important part of the user experience, as the Casino Guru Awards have demonstrated.

The regulator identified specific rules that it deemed to be unfair and to have put the players at a disadvantage. "Fafabet has the right at their discretion to close accounts or forfeit winnings within their bonus terms for new casino promotions,"a statement by the regulator read.

The watchdog accused Fafabet of breaching the so-called fair and open licensing conditions by including discretionary terms allowing the operator to effectively close customer accounts and/or forfeit their winnings without providing the player with a clear justification.

However, there have been other breaches. According to the UK Gambling Commission, some customers were able to gamble large amounts over a short period without sufficient information being collected by the operator.

Another issue arose from the operator not intervening in cases where players exhibited potential markers of gambling-related harm, such as spending a lot in a short period. While Fafabet did indeed reach out via email to caution gamblers not to overspend and slow down their roll, there was no follow-up in those instances where players had ignored the interventions.

"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. Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect," said Director of Enforcement and Intelligence at the UKC, John Pierce.

Vowing to do better and hiring a third-party auditor

Pierce further clarified that the regulator has failed across a range of issues and noted that Fafabet has chosen to collaborate with the investigation. Fafabet acknowledged deficiencies and confirmed that it has taken measures to improve its range.

However, the company will have to hire a third-party auditor who will assess the operator’s compliance with all relevant regulatory standards.

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