Despite previous commitments to prevent such transactions, the payment giants continue to be listed as available payment methods on multiple unlicensed gambling platforms.
The investigation found that nine gambling websites targeting UK customers offered Mastercard as a payment option, while two of them also accepted Visa. These sites, which operate without the required UK gambling licences, are still accessible to customers and are actively promoted via search engines and social media.Between October and December, the five most visited platforms among them attracted approximately 4 million UK visits. Several of these sites have been accused of failing to pay winnings and targeting problem gamblers with aggressive marketing tactics.
Numerous complaints have been filed against these gambling platforms. One UK customer claimed to have lost GBP 60,000 gambling unknowingly on an unlicenced site, while another reported being unable to withdraw GBP 6,000 in winnings after spending GBP 3,270 via their bank card.
One gambling platform, FatPirate, has been the subject of multiple complaints, with users alleging they were prevented from withdrawing their winnings. Another site, Gransino, allegedly deleted a customer's account after they raised concerns about withdrawal issues. Both sites were accepting Mastercard payments as recently as last week.
The Gambling Commission, the regulatory authority overseeing gambling in the UK, is aware of these unlicenced operators and has received complaints about at least five of the nine sites identified. However, these platforms remain operational, continue to accept card payments from UK customers, and offer promotional deals, including welcome bonuses of up to GBP 1,800.
Mastercard and Visa, alongside PayPal, previously agreed to block transactions linked to unlicenced gambling operators under a voluntary agreement with the Gambling Commission in 2014. Both companies are legally required to take measures to prevent their networks from being used for illegal activities. However, findings from the investigation indicate that they are still facilitating payments for illicit websites, raising concerns about the effectiveness of their due diligence processes.
Both Mastercard and Visa have reaffirmed their commitment to preventing illegal activity on their networks. "We have zero tolerance for illegal activity on our network. When specific instances of potentially unlawful or illegal activity are identified, we investigate the allegations so that we can work with partners to take the appropriate action. We are doing that now with the sites noted in the original inquiry", said a spokesperson from Mastercard. The company also emphasised that Mastercard does not have a direct relationship with the gambling sites but works through acquiring banks that are responsible for ensuring that merchants comply with regulations.
During the investigation, transactions on these gambling websites were processed via PaymentIQ, a payment orchestration tool designed to route payments through various financial institutions. This system is commonly used in high-risk industries to maximise approval rates for transactions.
Worldline, the French payment services provider that owns PaymentIQ, stated that the software is a “neutral” solution and does not process payments or control customer funds. The company emphasised that compliance with financial regulations is the responsibility of acquiring banks and merchants.
The Gambling Commission has been actively working to disrupt the illegal online gambling market. In the past 11 months, the regulator has issued over 770 cease and desist notices and referred more than 100,000 URLs to Google for removal.
However, enforcement remains challenging due to a tactic known as "phoenixing", where gambling operators create duplicate websites after their original platforms are taken down.
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