A shocking investigation has revealed that Mastercard and Visa—two of the world’s largest payment processors—are facilitating transactions on illegal gambling websites, despite previous commitments to prevent such activities. These unlicensed operators, which target UK customers, have been accused of scamming individuals out of vast sums, with some victims losing up to £200,000.
The Growing Scandal: Mastercard and Visa Linked to Illicit Betting Sites
Despite UK laws requiring gambling platforms to hold valid licenses, nine illegal gambling websites were found actively accepting Mastercard last week, while two also offered Visa as a payment option. This exposes a significant regulatory failure, as both financial giants profit from these transactions through small processing fees.
The alarming revelations stem from an investigation by Investigate Europe, which uncovered a network of gambling websites operating unlawfully across Europe. These findings have sparked fresh concerns over the role of financial institutions in enabling illicit activities.
Victims Speak Out: Devastating Financial and Emotional Toll
One UK customer, who lost £60,000, admitted the experience left them feeling suicidal. Another victim in Germany, who lost over £200,000, successfully took legal action against an operator, saying, “Those who run these casinos have stolen my life.”
The websites in question appear on Google search results and social media, attracting unsuspecting users with lucrative offers. Some platforms, such as FatPirate, have been accused of withholding winnings. One player who spent £3,270 with their bank card reported winning £6,000, only to be denied withdrawal access. Others, like Gransino, allegedly deleted accounts when customers complained about missing funds.
Regulators and Politicians Demand Action
The UK Gambling Commission has received numerous complaints about at least five of these unlicensed sites but has struggled to shut them down. Meanwhile, Iain Duncan Smith, chair of the All-Party Parliamentary Group on Gambling Reform, condemned Mastercard and Visa’s involvement, stating:
“These companies must immediately up their game and start blocking all unlicensed gambling site transactions.”
Both Mastercard and Visa responded, asserting they have zero tolerance for illegal activities and promising to investigate the allegations. However, critics argue that their due diligence efforts have been insufficient, with high-risk payment processing tools—like PaymentIQ—continuing to facilitate these transactions.
The Underground Gambling Economy: A Billion-Pound Threat
The illegal gambling market in the UK is booming, with estimates suggesting over £2.7 billion is spent on unlicensed sites annually. The Betting & Gaming Council has warned that the growing black market poses a serious threat to consumers, urging stronger regulatory enforcement.
Regulatory bodies claim they are taking action, having issued over 770 cease and desist notices and flagged more than 100,000 URLs for removal. However, the issue of “phoenixing”—where sites reappear under different names—remains a major challenge.
Mastercard and Visa: Enabling or Ignoring?
While Mastercard and Visa maintain they are not directly responsible for illegal gambling sites, their payment networks continue to process transactions, giving these unregulated operators a false sense of legitimacy. Many are now questioning whether financial institutions are turning a blind eye to these activities for the sake of profit.
What Can Consumers Do?
The UK Gambling Commission advises players to verify site licenses before making deposits. Additionally, experts warn that using unlicensed sites risks financial fraud, personal data theft, and withheld winnings.
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