The UK Gambling Commission (UKGC) has fined Taichi Tech, the company operating under the brand Fafabet, £170,000 for multiple regulatory breaches, including the use of unfair terms and conditions that could negatively impact consumers.
An investigation by the regulator revealed that Fafabet’s bonus terms included a discretionary clause allowing the operator to “close accounts or withhold winnings” at its sole discretion. The UKGC deemed this clause to be overly vague and potentially unfair, violating the transparency and fairness requirements outlined in the Licence Conditions and Codes of Practice (LCCP).
According to the LCCP, gambling operators are obligated to ensure that all terms are in line with the Consumer Rights Act 2015, which demands that consumer-facing terms be clear and equitable. The Commission concluded that Taichi Tech’s terms failed to meet these legal standards.
Beyond the fine, the company has been ordered to undergo an independent audit to evaluate the strength of its anti-money laundering (AML) controls and safer gambling procedures. The probe also revealed wider issues in compliance, especially concerning player protection and financial risk oversight.
The UKGC reported that Fafabet allowed customers to gamble significant amounts over short periods with insufficient due diligence. In some cases, individuals displaying signs of gambling harm, such as fast-paced, high-value betting, were not subject to meaningful checks or interventions.
One instance noted in the report involved the operator sending out responsible gambling emails that were ignored by customers, yet Fafabet failed to take any further preventative measures.
John Pierce, UKGC director of enforcement and intelligence, mentioned:
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.
