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UKGC fines Fafabet £170,000 over serious regulatory breaches
The UK Gambling Commission (UKGC) has imposed a £170,000 ($231,947) fine on Fafabet over unfair terms and failing to meet AML and player protection standards.
The investigation discovered that Taichi Tech Limited, the company operating under the Fafabet brand, included promotion terms stating that Fafabet has the right, at its own discretion, to close accounts or forfeit winnings. UKGC responded that this discretionary power violated the fair and open licensing condition, as it lacked transparency and could result in unjust outcomes for customers.
Under the Licence Conditions and Codes of Practice (LCCP), which all gambling operators in the UK must follow, businesses are required to have clear terms and conditions that do not conflict with consumer protection laws, including the Consumer Rights Act 2015.
UKGC concluded that Fafabet violates these requirements, giving the operator unilateral control without clear justification. Beyond the unfair terms, the Commission revealed that Fafabet failed to meet AML protocols and social responsibility practices.
In some cases, customers were able to bet large sums in a short span without the operator gathering acceptable information about them. In other cases, players who showed potential signs of harmful gambling didn’t receive timely interventions.
John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, stated:
“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.”
Taichi Tech Limited has accepted the Commission’s decision, acknowledging that it had previously failed to meet expected standards and will take steps to address the issues.
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