British Fafabet operator penalized £170,000 for unfair terms and conditions in the UK
In a recent announcement, the UK Gambling Commission (UKGC) has fined Taichi Tech Limited, the company behind the Fafabet brand, £170,000 for breaching consumer protection legislation and fair trading rules. The commission's investigation focused on the fairness, transparency, and legality of Fafabet's terms and conditions, Anti-Money Laundering (AML) practices, and social responsibility.
The Consumer Rights Act 2015 (CRA), as referenced by the UKGC, imposes specific requirements on casino bonus terms to ensure they are fair, transparent, and clear to consumers. The CRA is explicitly incorporated within the Gambling Commission's Licence Conditions and Codes of Practice (LCCP), which all licensed gambling operators in Great Britain must abide by.
The investigation found that Fafabet's terms and conditions contained a clause that granted the operator the right to close accounts or forfeit winnings at its own discretion. This discretionary term was deemed unfair by the regulator under the CRA and the fair and open licensing condition.
Similarly, Taichi Tech was found to have allowed some players to gamble large sums within a short period, despite holding limited customer information. This practice was considered a potential risk for money laundering activities and a breach of AML standards.
John Pierce, director of enforcement and intelligence at the commission, stated that all operators must comply with consumer protection legislation and ensure their terms and conditions meet regulatory standards. He also emphasised that licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.
In response, the Fafabet operator has already taken certain steps to address the issues highlighted by the Gambling Commission. However, the commission's findings suggest that Fafabet's practices may have led to unfair outcomes for consumers and potential money laundering activities.
The Fafabet operator must now undergo a third-party audit to ensure it is implementing AML and safer gambling policies and controls. The commission's investigation also found failures relating to social responsibility breaches by Taichi Tech.
In addition to the fine, the commission also fined Taichi Tech for failing to take appropriate action when some customers showed signs of potential gambling harm. The operator did not follow up with players that ignored safer gambling emails sent from the operator about their behaviour.
The Gambling Commission's investigation into Taichi Tech is part of its ongoing efforts to ensure that all licensed operators in Great Britain adhere to the highest standards of consumer protection, fairness, transparency, and responsible gambling.
- The UK Gambling Commission's findings highlight the importance of fair, transparent, and clear terms in casino-gambling, as demonstrated by their fines against Fafabet for an unfair account closure clause and neglecting responsible gambling.
- In the realm of casino-personalities and gambling-trends, it's crucial for operators like Fafabet to prioritize responsible gambling practices, following the UKGC's emphasis on social responsibility and tackling gambling harms among their customers.
