UK Ruling Highlights Crypto’s Role In Illegal Gambling Activity

A recent ruling involving Revolut has intensified attention on how cryptocurrency intersects with gambling in the UK, particularly where illegal betting activity and consumer protection overlap. The decision comes as financial regulators advance new crypto rules, while gambling reforms have yet to address how digital assets affect betting harms.

The Financial Ombudsman Service ordered Revolut to refund £400 to a customer, known as Mr H, after finding that the firm did not adequately support him while he used cryptocurrency purchases to gamble. The ruling has wider implications for how crypto-enabled transactions can bypass existing gambling safeguards.

Ombudsman Decision Highlights Crypto Loopholes

Mr H contacted Revolut several times between May and July 2025 seeking to limit his access to cryptocurrency tools, which he said were enabling harmful gambling behaviour. Although the app offered a gambling transaction block, it did not cover crypto conversions. Mr H also asked for permanent account closure, which the firm did not carry out.

Caroline Davies, the ombudsman who issued the ruling, said: “I am at a loss as to why Revolut couldn’t take the decision itself to close Mr H’s account permanently when it has the ability to do this and Mr H had requested that as a possible solution”.

She added that Mr H experienced a “poor customer journey aggravated by Revolut not getting to grips with the issues”.

The FOS said: “When gambling becomes an uncontrollable habit or addiction it can cause huge harm not just to an individual, but also to those around them, negatively impacting mental and physical health, relationships and finances.”

Banking Controls And Gambling Harm

UK banks increasingly use gambling transaction blocks as a harm-prevention tool. Revolut introduced its gambling block in April 2020, following restrictions on credit card gambling payments. However, the case shows how crypto features can sit outside these controls, allowing funds to reach betting sites indirectly.

Revolut said after the ruling: “At Revolut, protecting our customers is our highest priority. We provide all our UK customers with a gambling block feature.

“When enabled, this tool automatically blocks card payments that are identified as being for gambling.”

The Financial Conduct Authority has pointed to such tools as examples of supporting vulnerable customers. The regulator said: “Problem gambling causes significant financial hardship.”

Crypto And The Illegal Gambling Market

Crypto gambling remains prohibited among licensed operators in Britain, which has pushed its use into illegal markets. The Gambling Commission has repeatedly warned that crypto payments are linked to unlicensed operators.

“No company licensed by us is offering gambling with cryptocurrency in Britain,” a Commission spokesperson said.

“Any site that does is an illegal, overseas operator often run by criminal networks intent on scamming British consumers outside of the regulatory protections that we require legitimate gambling companies to provide.”

As the FCA moves toward finalising crypto regulations and the Treasury plans to bring crypto firms under formal oversight from 2027, the Revolut case highlights how gaps between financial controls and gambling rules can enable crypto-fuelled betting harms. For regulators, it reinforces the challenge of tackling illegal gambling where digital assets remain outside established protections.

Source:

“Where do fintech and crypto stand in the UK’s black market betting battle?”, sbcnews.co.uk, January 28, 2026