Gambling Operator Fined £170K for Unfair Terms and Safer Gambling Failures

_{Gambling Commission investigation found wording fell foul of licensing conditions. (Image: Timon Schneider/ Alamy Stock Photo)}

Taichi Tech Limited, the company behind online casino brand Fafabet, has been fined £170,000 by the UK Gambling Commission for a string of regulatory breaches, most notably, the use of unfair bonus terms and inadequate safeguards against money laundering and gambling harm.

The penalty follows a Gambling Commission investigation into Fafabet’s new customer promotions. The regulator found the company’s bonus terms included a clause stating: “Fafabet have the right at their own discretion to close accounts or forfeit winnings.”

That wording fell foul of fair trading rules. The Commission said such a discretionary term, allowing operators to forfeit customer winnings or close accounts without justification, lacks transparency and violates the fair and open licensing conditions required of UK licensees.

Unfair Terms and Legal Violations

Under UK law, the Consumer Rights Act 2015 ensures that terms in consumer contracts must be fair, transparent, and not cause a significant imbalance in the parties’ rights. This legislation is explicitly referenced within the Gambling Commission’s Licence Conditions and Codes of Practice (LCCP), which operators must follow to legally serve UK casino players.

By including vague and potentially punitive language in its bonus offers, Taichi Tech breached the LCCP’s fair terms requirement. The Commission concluded the operator had failed to meet the legal standard of clarity expected from licensees.

Anti-Money Laundering and Social Responsibility Failures

In addition to the unfair terms, the Commission cited multiple failings in Fafabet’s anti-money laundering controls and social responsibility policies. Among the issues:
    •    Customers were allowed to gamble large sums rapidly, despite the company having minimal information about them.
    •    Players showing potential signs of harm, such as fast, high-volume spending, did not trigger appropriate operator intervention.
    •    When customers ignored safer gambling emails and continued concerning behaviour, Fafabet failed to follow up or escalate its response.

These breaches highlighted a wider breakdown in Fafabet’s approach to risk management and customer protection.

Regulator: All Operators Must Play Fair

John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, emphasised that licensed operators must uphold high standards regardless of their size or market footprint.

“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,” Pierce said. 

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

Pierce noted that the Commission’s investigation uncovered weaknesses in both the company’s social responsibility and anti-money laundering procedures. These gaps, he said, posed risks to consumers and undermined trust in the regulated market.

Next Steps for Fafabet

Taichi Tech Limited has acknowledged the findings and committed to improving its compliance systems. As part of the regulatory settlement, the company is now required to appoint a third-party auditor to assess whether it is properly implementing gambling safety and anti-money laundering protocols going forward.

The Gambling Commission continues to tighten its oversight of UK licensees as public concern grows over problem gambling and predatory bonus practices in the online betting sector.