Taichi Tech Limited, the company operating under the Fafabet brand, has been fined £170,000 by the UK Gambling Commission following a series of regulatory breaches, including the use of misleading terms in its promotional offers and shortcomings in key compliance areas such as anti-money laundering (AML) and social responsibility.

UK Gambling Commission issues £170K fine to Fafabet operator:

The Commission’s investigation revealed that Fafabet’s bonus terms granted the operator the ability to “at their own discretion to close accounts or forfeit winnings,” a clause that the regulator determined violated the licensing condition for fairness and transparency. According to the Commission, this type of language lacks justification and could lead to consumer harm due to its arbitrary nature.

The regulatory body pointed out that such discretionary terms breach the “fair and open” licensing principle, which is grounded in the Consumer Rights Act 2015. This law is referenced explicitly in the Licence Conditions and Codes of Practice (LCCP) and serves as a cornerstone for ensuring that gambling operators maintain clarity, fairness, and legal compliance in their dealings with consumers.

In addition to the controversial terms and conditions, the Commission found multiple failures in how the operator managed money laundering risks and approached player safety.

Examples outlined in the report include allowing customers to spend substantial amounts over brief periods without sufficient customer knowledge checks. In cases where player behavior indicated potential harm—such as unusually fast betting patterns—there was often no proactive follow-up by the operator.

In some situations, emails regarding safer gambling concerns were sent but ignored, and yet no further efforts were made to intervene or support the customers in question. The regulator viewed this as a failure to uphold basic responsibilities under the license, particularly in the context of customer care and harm minimization.

John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, stated in the official press release: “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.”

Mandatory audit and operator’s acknowledgment:

As part of the enforcement action, Taichi Tech Limited is required to commission a third-party audit of its operations. This independent review will assess the operator’s implementation of AML procedures and safer gambling controls to confirm alignment with regulatory expectations.

The company has acknowledged that its past conduct did not meet the required standards. It has since initiated corrective steps and accepted the outcome of the Gambling Commission’s investigation.

In highlighting the case, the Commission reinforced the importance of regularly reviewing and updating terms of service, as well as maintaining robust internal systems for risk assessment and customer protection.