Illegal payment processing by Visa and Mastercard, alleges media.
Unlicensed Gambling Sites Slip Through the Cracks Despite Promised Action
In a bombshell expose by The Guardian, it's alleged that major players in the payment industry, Mastercard and Visa, are continuing to work with unlicensed gambling sites - a stark contrast to their promises to halt such cooperation.
Last week, these payment giants were found to be offering their services on nine unlicensed gambling sites, alongside cryptocurrencies. Visa was detected on two of these nine sites.
These sites operate without gambling licenses and are often aggressively promoted on social media. The five most popular ones attracted a staggering 4 million visits by UK users within just two months.
Worryingly, not only were these sites accepting payments, but they were also failing to pay out winnings to players, and even targeting users exhibiting signs of problematic gambling behavior [2][5].
The Gambling Commission, the regulatory body, claims to be fully aware of the situation and is taking necessary steps to address it. Meanwhile, spokespeople for Mastercard and Visa maintain that they have rigorously banned illegal activities within their networks, and are currently investigating the matter [2][5].
However, the broader industry appears to be concerned, with financial institutions like Monzo blocking £9 million in gambling-related transactions in 2024 [5]. Finnish authorities have also taken action by restricting payments to Betsson Group subsidiaries through payment blocks [5].
Recent reports suggest that there aresystemic challenges in payment providers' oversight of gambling-related transactions. Regulators and financial watchdogs have pointed out potential gaps in enforcement, particularly when it comes to unregulated operators [2].
As we wait for more information, it's clear that stricter Anti-Money Laundering (AML) compliance and operator licensing measures are crucial to safeguard both players and the industry itself [4][5]. These allegations against Mastercard and Visa raise questions about their actual commitment to responsible payments [2][5].
- The unlicensed gambling sites, which continue to slip through the cracks despite promised action, are reportedly still receiving service from payment giants such as Mastercard and Visa.
- Despite offering their services on nine unlicensed gambling sites, Visa spokespeople claim that they have rigorously banned illegal activities within their networks.
- Micro-blogging platform Twitter has faced criticism for not doing enough to prevent the promotion of these unlicensed gambling sites, which are often aggressively marketed to users.
- Financial institutions and regulators, concerned about the issue of unlicensed online gambling, are calling for stricter Anti-Money Laundering (AML) compliance and operator licensing measures to protect both players and the entertainment industry at large.
