The Guardian claims that despite prior pledges to stop such transactions, card behemoth companies Mastercard and Visa are still processing payments for unlicensed operations in the UK and collecting commissions as consumers report losing tens of thousands, even hundreds of thousands of pounds.
Together with American Express, Mastercard and Visa, the two of the three US payment networks that handled the majority of global credit card transactions in 2024, are handling payments for illicit gambling websites that are allegedly defrauding UK consumers out of the tens of thousands of pounds, while some lost hundreds of thousands. Despite a prior promise to do so, an investigation has revealed that the two payment giants aren’t doing enough to prevent transactions on unauthorized websites using their networks.
Nine websites that cater to UK consumers and offer specials for casino games and live sports betting this week accepted Mastercard and cryptocurrencies as payment methods. Two of such websites also offered Visa. Both businesses, which are regarded as the largest fintech companies in the world because of their widespread popularity and global reach, are said to benefit from the deals by receiving a small fee each time a transaction is completed.
Following an investigation by Investigate Europe into a network of gambling sites that operate in areas of Europe despite being outlawed, the card companies?connections to the unlicensed sites were made public.
One user said that he unintentionally lost over £60,000 while gambling on an unauthorized website and was left feeling suicidal. In a different instance, a guy who had lost over £200,000 successfully sued an operator in German courts.
Despite not having the legally requisite gambling licenses, the nine UK-based websites are listed in search results and promoted on social media. They’ve been charged for emailing problem gamblers and not paying out wins. Numerous complaints have been made against FatPirate, which claims to offer a welcome bonus of up to £425, alleging that it prohibits users from taking their winnings out.
After using their credit card to spend £3,270, a customer in the UK claimed to have won £6,000 but was unable to withdraw it. After complaining that he or she couldn’t withdraw their winnings, a user of Gransino, another illegal website, said his/her account had been canceled, which was followed by the information that everything was resolved after reaching out to help.
Requests for comment from the operators of these scamming websites from abroad weren’t answered. Visa and Mastercard said they’d look into the matter and that they’ve banned unlawful activities on their networks, even though they noted that it’s the acquiring banks that are responsible for enforcing the rules.
The Gaming Commission, which oversees gaming in the United Kingdom, acknowledged the existence of the websites and promised to keep taking action against them. For starters, Visa and Mastercard had decided to stop payments associated with unlicensed operations.
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