Fafabet operator fined £170,000 in UK for unfair terms and conditions

The UK Gambling Commission has imposed a £170,000 fine on Taichi Tech Limited, the operator behind the Fafabet brand, following a regulatory investigation that uncovered the use of unfair terms and conditions in its online casino promotions.

The penalty, announced in July 2025, underscores the regulator’s ongoing commitment to ensuring transparency and fairness in the UK’s gambling sector.

The investigation revealed that Fafabet’s promotional terms included a clause granting the operator the right, at its own discretion, to close customer accounts or forfeit winnings without clear justification.

The Gambling Commission determined that this discretionary power breached the ‘fair and open’ licensing condition, as it lacked transparency and could lead to unfair outcomes for consumers.

The clause was found in the bonus terms for new casino promotions and was deemed to violate the Consumer Rights Act 2015, which is explicitly referenced in the Licence Conditions and Codes of Practice (LCCP) that all licensed gambling operators must follow.

In addition to the unfair terms, the Commission’s investigation identified failures in Fafabet’s anti-money laundering (AML) and social responsibility practices.

The operator allowed some customers to gamble large sums of money in short periods without adequate checks, and failed to intervene effectively when players exhibited signs of gambling harm.

In several cases, customers who ignored email warnings continued to gamble at high velocity, raising concerns about the company’s commitment to player protection.

As part of the regulatory response, Taichi Tech Limited is required to undergo a third-party audit to ensure that its AML and safer gambling policies, procedures, and controls are effectively implemented.

The company has acknowledged its shortcomings and accepted the outcome of the investigation, stating that steps are being taken to address the identified issues.

John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, emphasised the importance of clear, fair, and transparent terms for all licensed operators.

“Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect,” he stated, reiterating the regulator’s expectation that all gambling businesses comply with consumer protection legislation.

The Fafabet case serves as a reminder to the industry that regulatory standards around fairness, transparency and player protection are non-negotiable.

The Commission’s actions highlight the need for operators to regularly review and update their terms and conditions, as well as their AML and social responsibility frameworks, to maintain compliance and safeguard consumer interests.