Fafabet has been fined £170,000 by the Gambling Commission for multiple failures, including the use of unfair terms and conditions.
The fine, handed down to Taichi Tech Limited, which trades as Fafabet, also related to deficiencies around anti-money laundering and social responsibility.
A Gambling Commission investigation found that Taichi Tech Limited had stated in its terms and conditions that “Fafabet have the right at their own discretion to close accounts or forfeit winnings’ within their bonus terms for new casino promotions”.
In turn, the regulator said the business had “breached the fair and open licensing condition” by including this “discretionary term to close accounts or forfeit winnings without clear justification”.
The breach relates to the Consumer Rights Act 2015, which is referenced in the Licence Conditions and Codes of Practice (LCCP).
The regulator said: “Such terms lack transparency and may lead to unfair outcomes for consumers.”
Alongside the breaches in terms and conditions, the Gambling Commission found some Fafabet customers were able to gamble large amounts of money in short periods while the business held “limited customer information”.
In some cases, individuals displaying potential markers of gambling-related harm, including high-velocity spend, had received “insufficient customer interaction”.
Additionally, safer gambling emails that had been sent to customers but were ignored were not followed up by the operator.
The Gambling Commission’s statement noted that Taichi Tech Limited had acknowledged it had fallen short of its requirements and had taken steps to “address these shortcomings”.
The business will be required to undergo a third-party audit to provide the Gambling Commission with assurance that it is adhering to its licence requirements.
Taichi Tech Limited received its casino, general betting – real event and general betting – virtual event licences from the regulator in February 2021.
Companies House records show the company’s registered office is in Reading and that its director is Liang Song.
Taichi Tech Limited generated turnover of £22.2m and a pre-tax profit of £100,656 for the 12 months to the end of March 2023.
John Pierce, Gambling Commission director of enforcement and intelligence, 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.
“Licensed operators must ensure their terms are clear, fair and transparent, so customers fully understand what to expect.”
Last month, EGR reported that the regulator had been frustrated by the “misleading impression” of its compliance activities following a report from The Times.
The post Fafabet hit with £170,000 fine over unfair terms and conditions first appeared on EGR Intel.
Gambling Commission hands parent company Taichi Tech Limited a six-figure penalty, as the regulator also unearths AML and social responsibility shortcomings
The post Fafabet hit with £170,000 fine over unfair terms and conditions first appeared on EGR Intel.