Big fine for small firm
The UK Gambling Commission (UKGC) has handed out a hefty fine to one of the country’s lesser known iGaming firms, Taichi Tech.
regulatory failures linked to anti-money laundering
The UKGC announced Tuesday it had fined the Reading-based company £170,000 ($232,249) for regulatory failures linked to anti-money laundering (AML), social responsibility violations, and unfair terms and conditions under its subsidiary Fafabet. The UK body took to X with news of its fine for the 2021-established Taichi Tech:
An investigation by the regulator discovered multiple failures. Breaches included terms in Fafabet’s casino bonus T&Cs that the UKGC said lacked transparency and “may lead to unfair outcomes for consumers.”
The failure within Fafabet’s bonus T&Cs for new casino promotions, the UKGC stated, came from Fafabet stating it reserved the discretionary right “to close accounts or forfeit winnings.”
The regulator added that Fafabet’s use of the discretionary clause “without clear justification” placed the firm in violation of fair and open licensing conditions.
Failings mount up
The regulator’s probe also uncovered social responsibility and AML violations. An example of the latter breach, stated the UKGC, was Taichi allowing some customers to gamble big amounts over short periods of time, despite the firm “holding limited customer information.”
Under the social responsibility aspect, the UK body accused Taichi of not taking appropriate steps for players’ “exhibiting potential markers of harm” such as gambling large amounts in short bursts.
The UKGC also found the firm guilty of not following up on safer gambling emails sent to at-risk customers. Taichi sent the emails to the customers in question who didn’t acknowledge them and continued their “concerning behaviour.”
taken steps to address these shortcomings”
The regulator, however, stated that Taichi acknowledged it fell short of UKGC standards “and has since taken steps to address these shortcomings.”
Besides paying the fine, Taichi is also legally required to commission an independent audit to ensure the firm is complying with regulations including safer gambling policies and AML.
Size doesn’t matter
The UKGC’s penalty against Taichi demonstrates the body’s intent to tackle regulatory violations from the biggest brands in UK gambling to the smallest.
In a news release about Taichi’s fine, UKGC Director of Enforcement and Intelligence John Pierce said the body expected all licensees to comply with consumer protection laws and ensure T&Cs meet regulations “regardless of their size or customer base.”
clear, fair, and transparent”
“Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.” The UKGC’s censure of Taichi comes a week after its Industry Forum Chair Nick Rust resigned, citing his frustration over public dialogue related to gambling policy.
