Another UK gaming operator has been hit with a fine following a Gambling Commission investigation, though not for the usual reasons.
Fafabet, which is registered as Taichi Tech Limited and trades under the former brand name, has been fined £170,000 ($215,900) for what the UKGC described as ‘unfair terms and conditions’.
This stands out as the vast majority of UK operators which find themselves running afoul of Gambling Commission rules tend to do so for anti-money laundering and/or social responsibility violations, usually a combination thereof.
The Commission particularly took aim at a discretionary term which allowed Fafabet to close customer accounts or forfeit winnings without justification. The UKGC criticised such terms as lacking transparency and leading to unfair outcomes for customers.
Though AML and safer gambling were not the focal point in this investigation, the UKGC has still found some discrepancies in this area. As well as issuing the firm a £170,000 ($215,900) fine, the Commission will also order a third-party audit of Fafabet’s operations.
This will investigate the abovementioned AML and safer gambling policies, procedures and controls – the areas which usually land betting firms in the most trouble, as in the record £17m ($21.59m) and £19m ($24.13m) penalties handed out to Entain аnd William Hill, for example.
John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, 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.
“Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.”
Dangerous Nuances in the Terms and Conditions
The UKGC has been vocal in the past in warning gambling customers to remain vigilant about betting operator’s terms and conditions, with a statement on its own website claiming that around 80% of gambling customers don’t read the T&Cs.
“You should take the time to read the terms and conditions, making sure you are aware of exactly what you are gambling on, restrictions, promotions or bonus offers,” the Commission says. “By doing this you will be able to make an informed decision as to whether you wish to continue gambling.”
This clearly puts a strong onus on the customer to be aware of the different T&Cs different operators put in place. However, there are clearly cases where the UKGC feels that the terms in place step over a certain boundary.
In many cases, it is unlicensed or offshore firms that often bring the issue of T&Cs to the attention – such as those advertising themselves as non-Gamstop casinos. These firms, many of which use cryptocurrency, can often be seen with conditions allowing them to withhold winnings and close accounts.
In the case of UKGC-licensed Fafabet, the Commission took offence at a condition in the firm’s bonus terms for new casino promotions which read that: ‘Fafabet have the right at their own discretion to close accounts or forfeit winnings’.
On top of this, the regulator also identified incidents of customers gambling large sums within a short period of time while Fafabet had limited information on said customers, individuals with potential markets of harm not being interacted with, and failure to follow up on safer gambling emails being sent but not acknowledged by a customer. These all breached AML and social responsibility rules.
The Commission has also reminded operators of the need for licensed betting firms to comply with the provisions of the Consumer Rights Act 2015 (CRA), which is referred to in bookmakers’ Licence Conditions and Codes of Practice (LCCP), relating to T&Cs.
Though this marks a deviation from the UKGC’s usual enforcement actions, it is not the first time a UK betting operator has faced issues around T&Cs. Back in March, Paddy Power was ordered to pay a customer £1m (1.27m) by the High Court, which determined that the bookmaker’s terms had not been ‘clearly signposted’ when the claimant in question was denied a large jackpot one.
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