Mastercard and Visa are dealing with charges that their networks are being exploited for transactions on illicit gambling websites, which have allegedly swindled UK customers out of thousands of pounds. An investigation discovered that these payment giants failed to stop the use of their networks for transactions on unlicensed gambling sites, despite earlier commitments to prevent such activities.
Last week, Mastercard was presented as a payment option alongside cryptocurrency on nine websites aimed at UK gamblers. Visa was also an option on two of these sites. Both companies reportedly earn fees each time a transaction is made, which reduces their incentive to stop these transactions.
This revelation coincides with an investigation by Investigate Europe into a network of banned gambling sites operating across Europe. One customer reported feeling suicidal after losing around £60,000 on an unlicensed platform, while another successfully prosecuted an operator in Germany after losing over £200,000.
These nine websites, which do not have the necessary gambling licenses required by law, are still accessible and promoted on social media. The five most popular among them attracted approximately four million visits from UK residents between October and December.
Neither Mastercard nor Visa have commented on their previous agreement with the Gambling Commission to block unlicensed gambling transactions. Both companies claim to have a zero-tolerance policy for illicit activities on their networks and vowed to investigate these claims. The UK Gambling Commission acknowledged the sites and stated that they would continue to act against them.
These findings cast doubt on the effectiveness of payment giants’ due diligence and raise concerns about the authorities’ ability to control unlicensed gambling operations. As many as 922 complaints about unlicensed operators were filed in the last two years. Members of Parliament, such as Iain Duncan Smith, have called on payment providers to improve their screening processes for unlicensed gambling sites.
Source: https://www.theguardian.com/society/2025/mar/09/mastercard-and-visa-linked-to-gambling-sites-accused-of-scamming-uk-customers
