Taichi Tech Sanctioned by Gambling Commission for Unfair Practices
Great Britain’s Gambling Commission has imposed a £170,000 ($231,952) penalty on Taichi Tech Limited, the entity behind the Fafabet platform, after determining that the company’s terms and conditions were deemed “unfair.”
The commission emphasized that a "discretionary" clause within their bonus terms allowed Taichi Tech to close accounts or revoke winnings without sufficient justification. This lack of clarity is a direct violation of fair licensing practices and heightens the risk of negative experiences for consumers.
The regulator specifically referenced the Consumer Rights Act 2015, which provides a framework for consumer protection in the UK, highlighting its significance in the context of gaming operators’ Licence Conditions and Codes of Practice.
Additional Concerns: AML and Social Responsibility
Furthermore, the regulator’s inquiry revealed deficiencies in the operator’s anti-money laundering (AML) protocols and adherence to social responsibility standards. It was noted that some players were permitted to wager substantial amounts in a brief timeframe, despite Taichi Tech having minimal customer information on file.
The investigation also revealed that the company failed to intervene appropriately when certain users exhibited behaviors indicative of potential gambling-related harm. Moreover, there was a lack of follow-up with individuals who disregarded safer gambling communications sent by the operator.
Consequently, the decision to issue a £170,000 fine underscored the importance of accountability, as Taichi Tech is now required to undergo an independent audit to verify compliance with AML and responsible gaming policies.
While the Gambling Commission acknowledged that Fafabet recognized its shortcomings, it has already initiated steps to rectify these issues. “We expect all operators, regardless of size, to adhere to consumer protection regulations and ensure that their terms and conditions are in line with regulatory expectations," stated John Pierce, director of enforcement and intelligence at the commission.
“Licensed operators must guarantee that their policies are clear, fair, and transparent, enabling customers to understand their rights fully,” he urged, reiterating the commitment to uphold consumer interests in the gaming sector.