Fafabet Fined by UKGC over Unfair Terms and Conditions

The company was fined £170,000 for these regulatory breaches. The fines have been imposed because Fafabet included an unfair clause in their bonus terms and conditions, letting players “close accounts or forfeit winnings”. The UKGC has deemed this to be non-transparent.

Fafabet breached Licence Conditions and Codes of Practice (LCCP) as their terms were not clear, fair, and compliant with the Consumer Rights Act 2015. Additionally, Fafabet has to undertake an independent audit of its anti-money laundering and safer gambling policies.

The investigation by the UKGC revealed further compliance failures, specifically those related to protecting customers and preventing money laundering. In multiple instances, Fafabet did not stop customers from gambling large sums of money in small windows of time. This is a significant fine, as the UKGC has previously been criticised for fining companies only seven times in the past year for breaches of anti-money laundering laws.

On several occasions, when consumers showed signs of gambling harm like quick, high-stakes gambling, they did not receive the proper due diligence or interventions. In one instance, some casino users received safer gambling emails that went amiss, but no actions were undertaken by the operator.

John Pierce, director of enforcement and intelligence at the UKGC, 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.”

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

Pierce said that the commission had recognised several “…deficiencies in the operator’s social responsibility and anti-money laundering controls…” and stated the significance of proper risk management and protection of consumers.

After the investigation, Tachi Tech said that they are aware of the breaches in regulation and have taken measures to remedy the problem.

It will be interesting to follow the aftermath of the UKGC’s investigation and what changes are made at Fafabet, and if any further sanctions will be placed on Taichi Tech.