Illegally Accessible Gambling Sites Still Accept Mastercard and Visa Transactions, Despite Bans Imposed
Revamped and Unveiled:
By Yannick Schroth, Angie Burke's Edit, Published on: 10.03.2025, Update: 30.04.2025.
Caught in the Crossfire: Mastercard and Visa Accused of Aiding Illegal Gambling Sites
The Unsanctioned Gambling Matrix
As The Guardian [English link] exposes, a significant probe by Investigate Europe has laid bare that the heavyweights in the payment industry, namely Mastercard and Visa, are guilty of facilitating illegitimate gambling platforms. These shady online casinos and sports betting hubs, unlicensed and unregulated, operate under the radar, offering casino games and live sports betting.
"The gambling industry is like an iceberg. Above water is the legal industry - regulated, controlled, and taxed. But it's floating in a sea of crime."- Ismail Vali, analyst at Yield Sec, Investigate Europe**
Despite a voluntary 2014 agreement with the UK Gambling Commission to curb such conduct, both companies remained as a payment option on multiple unauthorized gambling platforms. Mastercard was listed on nine such sites, while Visa gracefully graced two platforms, making transactions tangible while charging a minimal fee for their services.
Complaints on the Rise
Though these illegal platforms were devoid of a legal license, they persistently showed up in search results and were advertised on social media. Between October and December 2024, the top five unauthorized sites welcomed nearly four million visits from the UK.
The Gambling Commission has been inundated with complaints regarding these platforms. Some platforms failed to honor payouts or abruptly eliminated user accounts without warning. As per Al Mayadeen [English link], an irate FatPirate site customer walked away with a handsome 6,000 GBP (around 7,100 EUR) but was left stranded. A Gransino account was even shuttered after a user's complaint about refused payouts.
In the last two years, the Gambling Commission has recorded an alarming 922 complaints about unlicensed providers. Experts forewarn that users dealing with these platforms may jeopardize not only their hard-earned cash but also their sensitive personal data, which might be exploited or sold by criminals.
Reactions from the Stakeholders
Mastercard and Visa haveolas spoken out about the accusations, proclaiming that they are firm adversaries of illegal activities within their networks. They have initiated an investigation into the reported cases. However, they've pointed fingers at the banks, stating that they bear the responsibility to ensure merchants toe the line with regulations.
Intriguingly, the inquiry exposed that payments were routed through a system called PaymentIQ. This so-called payment orchestration enabled gambling sites to route transactions through various financial institutions, boosting their chances of approval. Worldline, the mastermind behind PaymentIQ, hastened to clarify that it was a neutral software solution, devoid of control over customer accounts and payment processing.
Germany's (Un)safe Bet
From Deutschland's perspective, credit card payments could conceivably float through to some illegal sites, just like those on legal platforms. While payment service providers are forbidden from processing transactions for illegal gambling providers, this breach of rule still occasionally occurs.
However, German players flirt dangerously with legality. Engaging in uncertified online gambling is outlawed, and offenders can face fines or imprisonment for up to six months. The Bundesgerichtshof has stated unequivocally that banks are under no obligation to refund unlawful credit card payments to illegal providers - lost cash remains out of reach. Those who prefer to prioritize caution should rely exclusively on platforms with a valid German license. The Joint Gaming Authority of the States white-list offers guidance on legitimate platforms.
For problem gamblers, credit card payments in online gambling could present a particularly grave risk [Link in English]. They empower swift and unchecked high stakes, allowing players to dive headfirst into financial peril without promptly feeling the fiscal heat.
The UK Gambling Commission has voiced that it has already served out more than 770 cease and desist orders and reported over 100,000 websites to Google for removal. Nevertheless, numerous gambling sites identified in the investigation remain operational, luring customers with lucrative welcome bonuses of up to £1,800 (around €2,100) and hundreds of free spins.
Detractors would criticize payment service providers for inadvertently lending validation to unlicensed gambling sites with their services. Iain Duncan Smith, parliamentary group for gambling reform chairman, labeled the findings as troubling and demanded immediate action from Mastercard and Visa to consistently block illegal transactions.
While the Gambling Commission ramps up initiatives to battle the black market, the reasons behind payment service providers' delayed action remain ambiguous. In the meantime, illegal gambling sites and gambling addiction burgeon as persistent issues. The Betting & Gaming Council estimates that British players channel over £2.7 billion (around €3.21 billion) annually towards unregulated sites.
- "What about Mastercard and Visa's actions in enabling transactions on illegitimate casino-and-gambling platforms? Aren't they supposed to be part of the solution, not the problem?"
- "It's fascinating to see how the finance sector, specifically Mastercard, could be contributing to the legitimization of unauthorized casino-and-gambling entertainment in the general news and sports realm."
- "By 2025, it's concerning to think that, due to Mastercard's involvement with unapproved online gambling, one could potentially lose not only their money but also their personal data to criminals."
- "In the eyes of the British Gambling Commission, Mastercard and Visa have failed to live up to their promises made in 2014, promising to discontinue services for unlicensed providers in the field of casino-and-gambling entertainment."
- "Watching the UK Gambling Commission's efforts to curtail the growth of unauthorized casino-and-gambling sites, one can't help but question the motives behind Mastercard's delayed response to such serious allegations."
- "With the alarming rise in complaints about unlicensed providers in casino-and-gambling entertainment and the financial risks associated with Mastercard's transactions, it's clear that immediate action is required to protect consumers."
