The UK Gambling Commission (UKGC) has fined Fafabet’s operator, Taichi Tech Limited, £170,000 over ‘unfair’ terms and conditions.
The UKGC, who regulate all gambling business in the country, took issue with a ‘discretionary’ term in Fafabet’s casino bonus T&Cs.
The term detailed how the operator, a major UK online casino, had the ability to close accounts or forfeit winnings at its own discretion.
Fafabet Breach Consumer Rights Act In New Casino Promotions T&Cs
When combing through the bonus terms for Fafabet’s latest casino promotions, players read: “Fafabet have the right at their own discretion to close accounts or forfeit winnings.”
It was argued that taking such action ‘without clear justification’ was a breach of fair and open licensing conditions by Fafabet, citing a severe lack of transparency that could result in unfair outcomes for players.
It was deemed ‘unfair’ under The Consumer Rights Act 2015 and John Pierce, Director of Enforcement and Intelligence at the UKGC, said:
“Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.”
UKGC Find Further Failures Relating To AML, Social Responsibility
Not only was Fafabet found to be in breach of the Consumer Rights Act, the UK betting site now has a few more problems to deal with as discovered by the watchdog.
The UKGC investigation found failures regarding anti-money laundering (AML) and social responsibility breaches by Fafabet.
The commission said some players were allowed to gamble large sums within a short timeframe despite the operator Taichi Tech holding very little customer information.
Also, Fafabet failed to act appropriately when some customers displayed signs of potential gambling harm. The operator did not follow up with players who ignored the safer gambling emails regarding their behaviour.
Alongside the £170,000 fine, Fafabet will undergo a third-party audit to iron out all of these issues. The operator accepted the standards simply weren’t good enough and has already started addressing a number of red flags.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
