Fafabet Penalized £170,000 by UKGC Over Unfair Terms

Discretionary Clauses Under Scrutiny

The UKGC's investigation revealed that Fafabet's terms included a clause granting the operator the right to close customer accounts or forfeit winnings at its discretion, without clear justification. Such terms were deemed to breach the 'fair and open' licensing conditions, lacking transparency and potentially leading to unfair outcomes for consumers.

Additional Compliance Failures Identified

Beyond the unfair terms, the UKGC identified failures in Fafabet's anti-money laundering (AML) and social responsibility practices. Instances included allowing customers to gamble large sums without adequate checks and failing to intervene when players exhibited signs of gambling harm. Consequently, Fafabet is required to undergo a third-party audit to ensure effective implementation of AML and safer gambling policies.