An online gambling company has been hit with a £170,000 ($124,300) fine after UK regulators found serious failings in how it operates. Taichi Tech Limited, which trades as Fafabet, was found to have used unfair terms and conditions in its promotions. The company will now have to bring in an independent auditor to review how well it is following rules on anti-money laundering and safer gambling.
The Gambling Commission launched an investigation into Taichi Tech and found the company had included a clause in its bonus terms for new casino promotions that said Fafabet could, at its own discretion, close accounts or forfeit winnings.
“Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.” – John Pierce, Gambling Commission Director of Enforcement and Intelligence
Regulators said this kind of discretionary term breached licensing conditions because it wasn’t clear or justified. They warned that such vague rules could easily lead to unfair outcomes for customers.
Fafabet criticized for failing to follow up on customer protection
Under UK law, gambling operators are required to make sure their terms are fair and transparent. The Consumer Rights Act 2015 is a key part of this, and it’s built into the Licence Conditions and Codes of Practice that all licensees must follow. The rules mean operators have to consider consumer protection laws as part of their day-to-day compliance.
The investigation also uncovered weaknesses in how Fafabet handled anti-money laundering checks and social responsibility. In some cases, customers were able to gamble large sums very quickly even though the company had little information about them. There were also situations where players showed signs of harmful behavior, like spending heavily in a short period, yet received little or no meaningful interaction from staff.
Even when safer gambling emails were sent to these players, no action was taken if they didn’t respond and their risky behaviour continued. Regulators said this lack of follow-up showed the operator wasn’t doing enough to protect its customers.
John Pierce, the commission’s enforcement and intelligence director, said: “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.”
He also pointed out that the commission’s review uncovered weaknesses in how the operator handled social responsibility and anti-money laundering. These included a failure to properly manage risks and a lack of effective measures to protect consumers.
The company has admitted that it didn’t meet the standards expected by the regulator in the past. It said it has since taken steps to improve its practices and address the issues raised.
As part of the regulatory action, the operator will now have to bring in an independent third-party auditor to check that it is meeting all the necessary regulatory requirements going forward.
ReadWrite has reached out to Fafabet for comment.
Featured image: Fafabet / Canva
