Visa and Mastercard have come under scrutiny for continuing to process payments for unlicensed gambling websites, despite previous commitments to prevent such transactions.
An investigation by The Observer revealed that several gambling platforms targeting UK players, none of which were licensed, were accepting payments via Mastercard and Visa. Some of these sites even promoted themselves through search engines and social media, drawing significant traffic from UK users.
Concerns Raised
The findings indicate that, despite a 2014 voluntary agreement between the payment giants and the UK Gambling Commission to block payments to unlicensed sites, these companies still facilitate transactions for such platforms.
Both Visa and Mastercard profit from processing these payments, yet the ongoing involvement of these payment networks has raised concerns about their regulatory compliance.
A number of UK and international gamblers have reported significant financial losses on these unlicensed platforms.
One UK player claimed to have lost £60,000, while another from Germany lost over £200,000. Both gamblers described their experiences as devastating, with allegations of withheld winnings and account closures also emerging.
Regulatory Challenges and Calls for Stricter Action
The UK Gambling Commission is aware of the issue and has taken steps to address it, issuing numerouscease-and-desist notices and referring problematic URLs to Google for removal.
However, many of the unlicensed websites remain operational and accessible to players from the United Kingdom. Despite taking action against some of these platforms, the Commission’s efforts appear insufficient in curbing the widespread issue of unlicensed gambling.
Iain Duncan Smith, the chair of the all-party parliamentary group on gambling reform, voiced concerns over Visa and Mastercard’s handling of the situation, urging them to take more immediate action. He emphasized that these companies must improve their compliance efforts, stating:
“These companies must immediately up their game and start blocking all unlicensed gambling site transactions.”
The persistent nature of these unlicensed gambling sites raises broader questions about the accountability of all parties involved in the payment process. While Visa and Mastercard argue that it is the responsibility of banks to ensure compliance with regulations, experts suggest that these payment giants need to take a more active role in preventing illicit gambling transactions.
The Role of Payment Orchestration and Industry Reactions
The investigation also highlighted the role of payment orchestration tools like PaymentIQ, which route transactions through multiple financial institutions to maximize approval chances.
Although PaymentIQ is marketed as a neutral software solution, its use has allowed gambling sites to bypass payment restrictions.
Both Visa and Mastercard have pledged to investigate and address any illegal activity on their networks. However, the lack of decisive action has led to mounting criticism from consumer advocates and industry experts.
According to Professor Heather Wardle of the University of Glasgow, the findings demonstrate the complexity of the unlicensed gambling ecosystem and call for greater accountability from all actors involved.
Despite the efforts of the UK Gambling Commission, unlicensed gambling continues to thrive, with British gamblers spending billions on these illegal platforms. The Betting & Gaming Council reports that over £2.7 billion was spent on unregulated gambling sites in the past year.
This highlights the urgent need for stronger enforcement and more proactive action from both regulators and financial institutions.
Source:
“Visa and Mastercard Linked to Illegal Gambling Transactions”, lcb.org, March 17, 2025
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