Illegal Betting Using Visa And Mastercard Payments
An investigation has found a group of unlicensed illegal betting sites in the UK allow their customers to use Visa and Mastercard, who get a cut from the payments.
Key Facts:
- Overseas-based sites are operating without a UKGC licence
- Observer found nine sites are taking Visa and Mastercard payments, as well as having banking options like cryptocurrency
- Customers have complained about having issues withdrawing winnings from unlicensed illegal online betting sites
- Ex-Conservative leader Iain Duncan Smith says Visa and Mastercard are risking legitimising illegal betting sites
The UK’s Gambling Commission (UKGC) is trying to clamp down on illegal betting sites.
But a report from the Observer suggests the issue remains a significant problem, with the newspaper assessing nine different websites operating without a licence.
It found Visa and Mastercard debit cards could be used to make deposits on illegal sites, potentially making the payment companies money due to each transaction.
Mastercard and Visa have agreed to block payments linked to unlicensed operators, having joined a voluntary arrangement with UKGC in 2014 alongside PayPal.
Issues Withdrawing Winnings
Customers of illegal online betting sites in the UK have reported problems accessing their winnings, with one saying their account was shut down when they complained.
Having joined one of the unlicensed sites, Gransino, they were told by the site’s customer service team it was the end of the matter when they asked about withdrawing winnings.
Gransino was still accepting Mastercard payments at the time of the Observer’s report.
Documents obtained by Investigate Europe show that in the two years to December, there were more than 920 complaints about unlicensed operators.
Mastercard and Visa were specifically mentioned in many of those complaints.
The Betting and Gaming Council, a lobby group representing licensed operators in the UK, estimates gamblers spend over £2.7 billion on unlicensed sites annually.
Deeply Concerning
Among those to comment on the Observer’s findings was the chair of the all-party parliamentary group on gambling reform, Iain Duncan Smith, the former leader of the Conservative Party.
Duncan Smith described the investigation as “deeply concerning” and called on regulators to “do more to clamp down on abuses by unlicensed operators”.
Of the involvement of Mastercard/Visa, Duncan Smith added: “These companies must immediately up their game and start blocking all unlicensed gambling site transactions.”
Mastercard issued a brief statement in response to the report, saying the company has “zero tolerance for illegal activity” on its network.
Visa said illegal activity on its network was “explicitly and unequivocally”banned and added: “We take this very seriously and investigate all reports of illegal activity.”
