Illegal Gambling Sites Still Accept Mastercard and Visa Payments, Despite Bans Imposed
Rewritten Article:
Mastercard and Visa Scrutinized for Aiding Unlicensed Gambling Sites
By Yannick Schroth, Edited by Angela Burke
Last Updated: 24.04.2025
In a shocking revelation, Mastercard and Visa are under fire for allowing payments to illegal gambling sites, despite a ban. Industry insiders compare the landscape to an iceberg, with legal, regulated operations visible above water and a vast, criminal underworld below.
Unregulated Gambling Sites Thrive with Payment Support
An investigation by Investigate Europe reveals that both payment service providers, Mastercard and Visa, continue to process payments for unlicensed gambling sites. These sites offer casino games and live sports betting without the necessary gambling license.
Ismail Vali, an employee of analysis firm Yield Sec, notes, "The gambling industry is like an iceberg. Above the waterline, the legal industry is visible - it's regulated, taxed, and controlled. But it floats in a sea of crime."
Despite a voluntary agreement with the UK Gambling Commission in 2014 intended to block such transactions, Mastercard and Visa have remained available on several unregulated gambling sites. Mastercard was listed on nine platforms, while Visa was found on two. Both companies earned a fee per transaction.
Complaints Pile Up as Customers Lose Out
While the gambling sites operate without a license, they remain discoverable through search engines and social media advertising. Between October and December 2024, the five most popular unlicensed sites received around four million visits from the UK.
As a result, the Gambling Commission has received hundreds of complaints about unpaid winnings and unexplained account deletions. For instance, a customer on FatPirate claimed a win of 6,000 GBP, only to be unable to withdraw their money. On Gransino, a user's account was permanently deleted after complaining about withheld winnings.
In the last two years, the Gambling Commission has recorded at least 922 complaints about unlicensed providers. Experts warn that players risk not only their money but also their personal data, which could be misused or sold by criminals.
Responses from Payment Providers and Authorities
Both Mastercard and Visa have responded to the allegations, stating that they do not condone illegal activities within their networks and will investigate the reported cases. However, they emphasize that banks are responsible for ensuring merchant compliance.
The investigation found that payments were facilitated through a system called PaymentIQ. This payment orchestration service allows gambling sites to route transactions through various financial institutions to increase transaction approval chances. Worldline, the company behind PaymentIQ, claims to be a neutral software solution with no direct control over customer accounts or payment processing.
Credit Card Payments in Illegal Gambling – A German Issue
In Germany, credit card payments are possible on some illegal gambling sites, just like on legal ones. Although payment service providers are prohibited from processing transactions for illegal gambling operators, this issue still arises.
However, German players risk legal consequences, as participating in unlicensed online gambling is illegal and can result in fines or imprisonment of up to six months. Moreover, the Federal Court of Justice has ruled that banks do not have to refund authorized credit card payments to illegal providers, so lost money typically cannot be recovered. To minimize risk, players should only use providers with a valid German license. The whitelist of the Joint Gaming Authority of the States provides information on legal platforms.
Dangers for Problem Gamblers
Credit card payments in online gambling could pose a particular risk for problem gamblers, as they enable quick, uncontrolled high-stakes play without immediate financial consequences.
The UK Gambling Commission has emphasized that it has already issued over 770 cease and desist orders and reported over 100,000 websites to Google for removal. Despite these efforts, many identified gambling sites remain active and offer enticing welcome bonuses and free spins to UK players.
Critics Question Payment Providers' Role
Critics argue that payment service providers legitimize unlicensed gambling sites through their services. Iain Duncan Smith, chairman of the parliamentary group for gambling reform, described the results as "concerning" and called on Mastercard and Visa to take immediate action to prevent illegal transactions.
While the Gambling Commission is intensifying efforts to combat the black market, it remains unclear why payment service providers have not yet enforced their own obligations. As the problem of illegal gambling sites and gambling addiction grows in the UK, authorities and industry experts continue to grapple with finding solutions to protect consumers and enforce regulations.
- What is troubling about the situation is that Mastercard and Visa, despite a ban, continue to process payments for unlicensed gambling sites, which are offering casino games and live sports betting without necessary licenses.
- Ismail Vali, an employee of analysis firm Yield Sec, explains that the gambling industry is like an iceberg; while the legal, regulated industry is visible above the waterline, it sits in a sea of crime beneath, with unregulated sites thriving with payment support from providers like Mastercard and Visa.
- As a result of unregulated gambling, customers have been losing money and facing issues with unpaid winnings and unexplained account deletions, with hundreds of complaints made to the Gambling Commission.
