UK Gambling Commission Fines Fafabet Operator for Unfair Terms

The UK Gambling Commission has fined Taichi Tech Limited, the operator of the Fafabet brand, £170,000 (around $231,952) after uncovering issues related to unfair terms and other compliance failures.

Good to know

• Fafabet included vague bonus terms that allowed the operator to cancel winnings at will.
• The Commission cited both consumer protection and anti-money laundering failures.
• Taichi Tech must now undergo an independent audit to fix compliance issues.

The fine came after the Commission found that Taichi Tech used a “discretionary” clause in its bonus terms, giving the company the ability to close accounts or void winnings without clearly explaining why. The Commission ruled this type of clause as unfair and lacking the transparency required under licensing rules.

Regulators referred to the Consumer Rights Act 2015, which is built into the Gambling Commission’s Licence Conditions and Codes of Practice (LCCP). These rules require that operators treat customers fairly and avoid unclear or one-sided terms.

John Pierce, director of enforcement and intelligence at the Commission, 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.”

Alongside the concerns over terms and conditions, the Commission also flagged issues tied to anti-money laundering (AML) and social responsibility. Some customers were allowed to gamble large sums of money over short periods, even though the operator had limited information about them. The regulator also said that Taichi Tech failed to intervene when players showed possible signs of gambling harm.

In certain cases, Fafabet sent safer gambling emails that were ignored, and the company did not follow up with the players afterward. That failure contributed to the fine and triggered a requirement for the company to go through a third-party compliance review focused on both AML procedures and safer gambling practices.

The Gambling Commission did note that Taichi Tech admitted to falling short and has already started making improvements.

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