Fafabet Operator Taichi Tech Fined £170,000 by UKGC for Regulatory Breaches

The investigation conducted by the Commission found that Fafabet had included in its bonus terms that the operator can “…close accounts or forfeit winnings…” at its own discretion, which was deemed as untrustworthy and potentially harmful to users.

Operators must comply with all provisions outlined in the Licence Conditions and Codes of Practice (LCCP), which Taichi Tech failed to do through their breach of transparency. The Consumer Rights Act 2015 offers clear guidelines on how operators can create a site that prioritises fairness and clarity for its users and the UKGC declared Taichi Tech as failing to meet the industry standard.

A full investigation followed this discovery and more accounts of compliance failures were found. The main issues centred around customer protection and money laundering. The site was found to be enabling users who were showing signs of gambling harm, with frequent high-stakes gambling. The company was choosing to ignore this misuse of their site, not offering intervention with responsible gambling tools.

John Pierce, director of enforcement and intelligence at the UKGC, 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.” He reaffirms that, “Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.”

Pierce reiterated the importance of effective risk management and consumer protection, ensuring customers and other operators understand how seriously UKGC take these regulations.

In response, Taichi Tech admitted that they are aware of the regulatory breaches and have taken steps to rectify the issues. This investigation has emphasised that these guidelines are not just there to be ignored, but operators must follow them to avoid consequences. Taichi Tech may have addressed the problems highlighted by the UKGC, but it will be interesting to see what further changes the company makes to restore its reputation.