Regulatory agency, UKGC, imposes penalty of £170,000 on Fafabet's parent company due to regulatory lapses and unjust casino terms and conditions.
In a move to uphold the highest standards of fairness and transparency in the UK's iGaming sector, the UK Gambling Commission (UKGC) has imposed a £170,000 fine on Taichi Tech, a lesser-known iGaming firm based in Reading. The penalties were announced on Tuesday, following a rigorous investigation into the firm's subsidiary, Fafabet.
The regulatory failures were linked to breaches in anti-money laundering (AML), social responsibility violations, and unfair terms and conditions under Fafabet. The fine demonstrates the UKGC's intent to tackle regulatory violations from small firms like Taichi Tech, reinforcing its commitment to maintaining a safe, transparent, and legally compliant gambling environment.
The UKGC's probe uncovered several concerning practices. Fafabet was found to have allowed some customers to gamble large amounts in short bursts, despite holding limited customer information. This is a clear breach of AML regulations, as it fails to ensure proper identity verification and continual monitoring for suspicious activities.
The UKGC also criticised Fafabet's bonus terms for new casino promotions. These terms included a discretionary right to close accounts or forfeit winnings, which the UKGC deemed a violation of fair and open licensing conditions due to the lack of clear justification.
In line with its social responsibility requirements, the UKGC emphasised the importance of clear, fair, and transparent terms and conditions for licensed operators. It also highlighted the need for appropriate steps to be taken for players exhibiting potential markers of harm.
John Pierce, UKGC Director of Enforcement and Intelligence, expressed his expectations for all licensees to comply with consumer protection laws and ensure their terms and conditions meet regulations. He stated, "All operators must ensure they are treating their customers fairly and adhering to the strict standards set by the UKGC to protect vulnerable individuals from the risks associated with gambling."
Taichi Tech has acknowledged falling short of UKGC standards. As a result, the firm is legally required to commission an independent audit to ensure compliance with regulations, including safer gambling policies and AML. This audit will help Taichi Tech address the regulatory breaches and reaffirm its commitment to upholding the UKGC's rigorous requirements.
The UKGC's censure of Taichi comes a week after its Industry Forum Chair, Nick Rust, resigned due to frustration over public dialogue related to gambling policy. Rust's departure underscores the ongoing challenges faced by the UKGC in maintaining a balanced approach to regulation and protecting consumers while supporting the industry's growth.
The UKGC's actions serve as a reminder to all iGaming firms operating in the UK to prioritise AML controls, enforce strong social responsibility measures, and operate with transparent, fair terms and verifiable game integrity to maintain their license and operate legally in the UK market.
To ensure the continuation of safer gambling environments, the UK Gambling Commission (UKGC) has emphasized the need for casino-and-gambling firms like Taichi Tech to adhere to stringent regulations, particularly in casino-games. This underscores the importance of Fafabet, a subsidiary of Taichi Tech, to observe fair terms and conditions, maintain proper AML regulations, and implement effective social responsibility measures to uphold the integrity of their casino-games.
