Mastercard and Visa are facing tough questions over their role in handling payments for unlicensed gambling sites, with UK players reporting heavy losses. An investigation by The Observer uncovered that the payment giants still facilitate transactions for illicit operators despite previous commitments to block such activity.
Investigators found nine gambling websites targeting UK players, none of which hold a valid gambling licence, offering Mastercard as a payment option. Two of the websites also listed Visa. These platforms, heavily promoted through search engines and social media, attracted millions of UK visits between October and December last year.
The findings raise concerns over the effectiveness of payment companies’ oversight. Although both card giants profit from a transaction fee per payment, critics question their thoroughness in preventing unlicensed gambling transactions. Despite a 2014 voluntary agreement with the Gambling Commission to block such payments, evidence suggests little progress.
The human impact of unregulated gambling is grim.
A UK player walked in with hope and left with nothing—£60,000 (€71,466) lost on an unlicensed site, a nightmare they called ‘life-destroying.’ Another gambler, who took legal action in Germany after losing over £200,000 (€238,220), stated, “Those who run these casinos have stolen my life.”
Cases of winnings being withheld are also widespread. FatPirate, an unlicensed platform, allegedly blocked withdrawals from players, including a UK customer who won £6,000 (€7,146) after spending £3,270 (€3,896) but was denied their payout. Another site, Gransino, reportedly deleted a player’s account after they complained about missing funds.
The operators of these sites, often based overseas, failed to respond to requests for comment. Meanwhile, Mastercard and Visa insisted that illegal activity is prohibited on their networks, vowing to investigate the allegations.
The UK Gambling Commission confirmed awareness of the sites and pledged continued enforcement action. Yet, despite receiving complaints about at least five of the nine sites identified, all remained operational last week. Some offered bonuses of up to £1,800 (€2,144) and hundreds of free spins, incentivising UK players to engage despite the risks. The UK Gambling Commission (UKGC) recently faced court action over its regulatory inquiry into Betfair, owned by Flutter Entertainment.
The watchdog claims to have issued over 770 cease and desist notices in the past 11 months, referring more than 100,000 URLs to Google for removal. However, experts argue that enforcement alone is not enough. Professor Heather Wardle of the University of Glasgow called for greater accountability across the industry, stating, “Every actor in the chain should be responsible. They should not be complacent about how their actions enable these harms.”
Former Conservative leader Iain Duncan Smith echoed these concerns. As chair of the all-party parliamentary group on gambling reform, he described the findings as “deeply concerning,” urging Mastercard and Visa to act swiftly. “These companies must immediately up their game and start blocking all unlicensed gambling site transactions,” he said.
The investigation put the spotlight on payment orchestration tools like PaymentIQ. This system, buried inside these gambling sites, shuffles transactions through multiple financial channels to get them approved. But Worldline, the French company behind it, insists it’s a ‘neutral’ tool with no control over compliance or customer funds.
With payment processors in the mix, things get murky fast, so who’s really in charge of keeping transactions clean? While Visa and Mastercard argue that banks are responsible for ensuring merchants follow regulations, consumer advocates believe the card companies have a duty to enforce stricter controls.
Unlicensed gambling is a growing issue in the UK. According to the Betting & Gaming Council, British gamblers spent more than £2.7 billion (€3.21 billion) on unlicensed sites last year. These sites don’t just attract gamblers. They go after the most vulnerable, using high-pressure marketing to reel them in. The UK isn’t the only jurisdiction facing the threat of increased illegal gambling. Macau has witnessed a dramatic surge in illegal gambling incidents in 2024, with authorities recording 137 cases, a 389.3 percent increase compared to the 28 cases identified in 2023.
The Gambling Commission has repeatedly warned consumers of the risks. “Your financial data could be stolen, harvested, or misused, and you may not even be paid out if you win,” a spokesperson said.
Yet, the continued availability of these sites raises an uncomfortable question: if regulatory bodies and major payment firms cannot effectively prevent their operation, what more can be done?
With Mastercard and Visa now under pressure to act, the coming months will reveal whether meaningful change is on the horizon—or if the cycle of illicit gambling and consumer losses will persist.
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