Visa and Mastercard Linked to Illegal Gambling Transactions

Visa and Mastercard have been implicated in processing payments for unlicensed gambling websites, despite previous pledges to prevent such transactions. An investigation has uncovered their ongoing involvement, sparking concerns about regulatory enforcement and consumer protection.

Payment Giants Tied to Unlicensed Gambling Sites

An investigation by The Observer found that nine gambling websites targeting UK players, none of which hold valid licenses, were offering Mastercard as a payment option. Additionally, two of these sites accepted Visa. These platforms, heavily promoted through search engines and social media, attracted significant traffic, with the five most popular drawing approximately four million visits from UK users between October and December.

Despite a 2014 voluntary agreement with the UK Gambling Commission to block payments to unlicensed gambling sites, the latest findings suggest that Visa and Mastercard continue facilitating these transactions. Both companies profit from transaction fees but face mounting scrutiny over their compliance efforts.

The impact on consumers has been severe. One UK gambler reported losing approximately £60,000 on an unlicensed site, stating the experience left them in despair. Another gambler in Germany pursued legal action after losing over £200,000, saying, “Those who run these casinos have stolen my life.”

Allegations of sites withholding winnings are widespread. FatPirate, an unlicensed casino, reportedly prevented players from withdrawing funds. A UK player claimed they won £6,000 after depositing £3,270 but were denied their payout. Similarly, a player using Gransino alleged their account was deleted after they attempted to withdraw winnings.

Operators of these sites, many based overseas, did not respond to requests for comment. Meanwhile, Visa and Mastercard stated that illegal activity is prohibited on their networks and that they would investigate the reported cases.

Regulatory Challenges and Industry Response

The UK Gambling Commission confirmed its awareness of the issue and stated that it continues to take action against unlicensed operators. However, despite receiving complaints about at least five of the nine sites identified, these platforms remained operational and accessible to UK players. Some of the sites offer lucrative promotions, including bonuses of up to £1,800 and hundreds of free spins, further enticing users.

In the past 11 months, the regulator claims to have issued more than 770 cease-and-desist notices and referred over 100,000 URLs to Google for removal. Despite these measures, industry experts argue that enforcement alone is insufficient. Professor Heather Wardle of the University of Glasgow emphasized the need for greater accountability across the payment ecosystem, stating, “Every actor in the chain should be responsible. They should not be complacent about how their actions enable these harms.”

Iain Duncan Smith, chair of the all-party parliamentary group on gambling reform, echoed these concerns, calling the findings “deeply concerning.” He urged Visa and Mastercard to take immediate action, stating, “These companies must immediately up their game and start blocking all unlicensed gambling site transactions.”

The Role of Payment Technology

A key component of the issue is the use of payment orchestration tools such as PaymentIQ. This system, embedded in gambling websites, routes transactions through multiple financial institutions to increase approval chances. Worldline, the French company that owns PaymentIQ, maintains that it is a “neutral” software solution and does not control payment processing or compliance enforcement.

Visa and Mastercard, for their part, argue that banks are responsible for ensuring merchants adhere to regulations. However, consumer advocates believe that card companies must take a more active role in preventing unlicensed gambling transactions.
Unlicensed gambling sites continue to pose a growing threat to UK consumers. According to the Betting & Gaming Council, British gamblers spent more than £2.7 billion on unregulated platforms last year. These sites often target vulnerable individuals, using aggressive marketing tactics to lure them in.

The Gambling Commission has consistently warned about the dangers of engaging with unlicensed operators. A spokesperson reiterated the risks, stating, “Your financial data could be stolen, harvested, or misused, and you may not even be paid out if you win.”

Despite these warnings, the persistence of unlicensed gambling sites raises critical questions about regulatory effectiveness and the responsibility of major financial institutions in preventing illicit transactions.

With growing pressure on Visa and Mastercard to enforce stricter controls, the coming months will determine whether meaningful action will be taken or if unlicensed gambling operations will continue to flourish.

Source:

‘’Mastercard and Visa linked to illegal gambling sites accused of scamming UK customers’’, theguardian.com, March 2025.