Summary
- UK Regulator Fines Fafabet for Failing to Comply with AML and T&Cs Regulations
- The regulator highlighted the unfairness of the terms.
- The watchdog similarly reported that Fafabet failed to take action in certain instances of consumer harm.
The UK Gambling Commission has taken enforcement action against Taichi Tech Limited, operating as Fafabet, and fined the company ÂŁ170,000 for what it described as unfair terms and conditions.
Fafabet faces a stiff penalty over regulatory shortcomings
The clarity and fairness of terms and conditions, whether related to bonus rules or general casino policies, are crucial for enhancing user experience, as highlighted by the Casino House Group Awards. The regulator identified specific regulations that were considered unfair and disadvantageous to players. In a statement, the regulator noted, Fafabet reserves the right, at their discretion, to close accounts or forfeit winnings under new casino promotions' bonus terms. The watchdog accused Fafabet of violating the principle of fair and open licensing by including terms that allow the operator to arbitrarily close customer accounts and/or confiscate winnings without giving a clear explanation. Additional breaches were noted. The UK Gambling Commission found that certain customers could gamble large amounts over a short time frame without the operator collecting adequate information. Another concern was the operator's lack of intervention when players showed potential signs of gambling-related harm, such as excessive spending in a short period. While Fafabet did issue email warnings to caution gamblers against overspending and advised slowing down, there was no follow-up when such warnings were ignored. We expect all operators, irrespective of their size or customer base, to comply with consumer protection laws and ensure their terms and conditions adhere to regulatory standards. Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect, said John Pierce, Director of Enforcement and Intelligence at the UK Gambling Commission.
Vowing to do better and hiring a third-party auditor
Pierce clarified that the regulator has encountered multiple issues and remarked that Fafabet is cooperating with the investigation. Fafabet admitted its shortcomings and has implemented steps to enhance its offerings. However, the company must appoint an independent auditor to evaluate its compliance with all pertinent regulatory standards.
