UKGC Fines Fafabet Parent for AML and T&C Violations

Taichi Tech Limited’s Fafabet brand has found itself under fire in the UK as the UK Gambling Commission (UKGC) accused the operator of regulatory failures. In addition to paying a fine, the gaming company will be required to engage the services of a third-party auditor.

Fafabet’s Terms Were Unclear

Upon investigating the company, the UKGC learned that Fafabet had breached the fair and open licensing conditions by “including a discretionary term allowing the operator to close customer accounts or forfeit winnings without clear justification.”

Fafabet have the right at their own discretion to close accounts or forfeit winnings.

Fafabet statement

The UKGC said that this lack of clarity could lead to unfair outcomes for consumers and is, therefore, intolerable. It cited the Consumer Rights Act 2015 (CRA), which lays out a variety of rules companies must follow. Under the Licence Conditions and Codes of Practice (LCCP), gambling companies must make sure that their terms and practices are clear, fair, and consistent with consumer protection laws.

The UKGC Uncovered AML Failures

Upon further investigation, the UKGC also understood that Taichi Tech Limited had committed a variety of anti-money laundering and social responsibility violations. These included cases in which customers were able to gamble a lot of money within a short period of time.

In other cases, customers who experienced markers of gambling harm did not receive sufficient intervention from the gambling company. The UKGC explained that some consumers were contacted via emails, which they ignored and continued to gamble riskily without further intervention.

Taichi Tech to Pay Fine, Undergo Audit

As a result of its violations, Taichi Tech Limited was hit with a £170,000 ($231K) fine. It was also required to undergo a third-party audit of its AML and safer gambling practices to ensure that no further violations are committed.

John Pierce, the UKGC’s director of enforcement and intelligence, commented on the case, saying that the regulator expects each and every operator, regardless of how big it is, to follow the UK’s consumer protection standards and T&C-related regulations.

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

John Pierce, director of enforcement and intelligence, UKGC

Fafabet responded to the UKGC’s penalty, acknowledging that it had failed to live up to the UKGC’s standards. The operator added that it has since implemented remediation measures and is committed to doing better.