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A new report has revealed that Mastercard and Visa are facilitating transactions for unlicensed gambling sites in the UK, which are being accused of defrauding players of thousands of pounds.
The investigation was coordinated by Investigative Europe and revealed that despite prior pledges to restrict payments to unregulated gambling platforms, Mastercard and Visa still enable transactions on nine illegal sites. These sites offer both casino games and live sports betting options.
The report indicates that Mastercard was available as a deposit and withdrawal option alongside cryptocurrency on all nine platforms, whereas Visa was included on two of them. Additionally, both companies are reportedly earning a small fee for each transaction processed through their networks.
According to the Betting & Gaming Council, gamblers in Great Britain spend over £2.7 billion annually on unregulated platforms. These sites operate outside the jurisdiction of the Gambling Commission, posing significant risks to players who may struggle to pursue legal actions or recover lost winnings.
Unregulated Sites Withholding Player Winnings
In addition to operating illegally, these sites have been accused of witholding player winnings and even going as far deleting accounts in some cases.
One site, FatPirate, attracts players with a £425 welcome bonus and free spins but has faced numerous complaints. One player reported winning £6,000 after spending £3,270 with their bank cards. However, when they attempted to withdraw their winnings, the site restricted access to their funds.
Gransino is another unlicensed site that has garnered complaints, with one player alleging that their account was deleted after they inquired about difficulties withdrawing winnings. After reaching out to customer support, the player was informed that the matter was closed. They expressed feeling “devastated,” stating, “They take your money and never pay out.”
There have also been several other harrowing cases, including a customer who lost £60,000 to an unlicensed site and was left feeling suicidal and another who successfully took the issue up in a German court after losing £200,000, stating, “Those who run these casinos have stolen my life.”
Enforcement and Regulation Issues
This investigation has raised questions about the role of financial companies in facilitating illegal gambling transactions and the regulator’s failure to stop the process in the first place.
Reports show that the five most popular unregulated sites drew over 4 million visitors from the UK between October and December 2024. Despite being illegal, these platforms continue to run strong ad campaigns on social media and appear prominently in online search results.
The UK Gambling Commission(UKGC) has received dozens of complaints about most of these unauthorized platforms, yet they continue to operate. Documents reveal that over 900 complaints regarding these unregulated sites were submitted to the UK regulator between 2022 and 2024. These sites lure players in with bonuses of up to £1,800 and free spins on popular video slots.
Mastercard, Visa, and PayPal entered a voluntary agreement with the UKGC in 2014 to block transactions through their networks. However, over a decade later, little has changed, as these companies continue to facilitate payments on high-traffic illegal sites, including some that have been accused of scamming players.
Card Companies Urged to Do Better
Reacting to the report, Iain Duncan Smith, chair of the all-party parliamentary group on gambling reform, said the findings were ‘deeply concerning’ and urged regulators to do more to “clamp down on abuses by unlicensed operators.”
Smith also warned that Mastercard and Visa appearing on these platforms gave them a sense of credibility that could mislead certain players. “These companies must immediately up their game and start blocking all unlicensed gambling site transactions,” he added.
Deceptive Tactics of Unlicensed Platforms
These unlicensed platforms have been known to take significant measures to project an image of legitimacy to payment processors. Some set up entirely fictitious eCommerce websites that seem to offer a range of products and services. This strategy enables them to gain approval for processing credit and debit card transactions while hiding their actual activities.
Investigators found that payments were processed using PaymentIQ, a tool common in high-risk sectors. This system directs transactions through multiple financial institutions, boosting the chances of approval.
Worldline, the owner of PaymentIQ, has described the service as a “neutral” payment solution that does not control or process customer funds directly. The company also said it’s not responsible for operators not complying with legal obligations.
The UKGC has continued its fight against illegal gambling operations in Great Britain, issuing over 770 cease-and-desist notices in the past 11 months and referring more than 100,000 URLs to Google for removal.
The regulator has also urged players to always check a site’s licensing status before registering and placing any bets.
Source: Next.io
