Following an investigation by Investigate Europe that found that Visa and Mastercard handled payments for unauthorized gambling websites, the corporations are now under investigation. Notwithstanding the payment companies’ earlier pledge to prevent illicit transactions, these platforms are accused of defrauding UK consumers out of thousands of pounds.
According to the research, two gambling sites offered Visa as a deposit option, while nine gambling sites that lacked the required UK licenses permitted Mastercard deposits. These websites, which advertised live sports betting and casino games, persisted in their operations in spite of legislative limitations. Search engines and social media sites also aggressively promoted these websites, resulting in millions of visits from October to December of last year.
Customers Report Lost Winnings and Account Deletions
Many users who deposited funds on these sites reported serious issues, including withheld winnings and account deletions. One UK customer shared that they won £6,000 ($7,759) after spending £3,270 ($4,228) but were unable to withdraw their prize. Similarly, a Gransino player said their account was deleted after they complained about withdrawal issues. Customer support simply told them, “it was the end of the matter.”
Some individuals lost staggering amounts. One person lost £60,000 ($77,592) on an unlicensed site and felt suicidal. Another player, who lost more than £200,000 ($258,641), pursued legal action in German courts, stating, “Those who run these casinos have stolen my life.”
Iain Duncan Smith, chair of the all-party parliamentary group on gambling reform, condemned the situation. He acknowledged that most gambling-related harm stems from licensed operators but insisted more action is needed against unlicensed sites. “These companies must immediately up their game and start blocking all unlicensed gambling site transactions,” he said.
The UK Gambling Commission, which oversees gambling regulations, confirmed it is investigating at least five of the nine sites. However, no enforcement action has been taken yet. The commission reported 922 complaints about unlicensed operators over two years, with several specifically mentioning Visa and Mastercard.
Both payment processors responded to the report. Mastercard reaffirmed its “zero tolerance for illegal activity” and promised to investigate. Visa stated that illegal transactions are “explicitly and unequivocally” prohibited on its network.
The inquiry also found that these gambling sites’ transactions were handled by PaymentIQ, a program owned by Worldline, a French provider of payment services. Worldline asserted that it does not directly handle client funds and simply offers impartial software.
The gaming Commission is still working to stop unlawful gaming in the meanwhile. It has asked for the removal of 100,000 URLs from search engines and issued more than 770 cease-and-desist requests in the last 11 months.
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