Visa and Mastercard have been accused of taking part in scamming customers in the United Kingdom by helping process illegal transactions made on unlicensed gambling websites, and all despite a prior promise to stop. For example, just last week, Mastercard was offered as a payment method in 9 cryptocurrency websites, while Visa was offered in two of those websites as well.

An investigation has revealed that financial giants Visa and Mastercard are facilitating transactions for illegal gambling websites reportedly scamming customers in the UK out of thousands of pounds. Despite previous commitments to prevent such activity, the payment processors continue to enable unlicensed operators, raising serious concerns about their role in the online gambling industry.

Payment giants under scrutiny

Mastercard was recently listed as a payment method on a total of nine gambling websites targeting customers in the UK, offering live sports betting and casino games. Visa was available on two of these sites. It seems that both these companies reportedly profit from these transactions, earning a fee with each payment processed.

The investigation, coordinated by Investigate Europe, highlights how unlicensed gambling platforms continue to operate despite being prohibited in various European countries. The findings have sparked alarm among regulators and consumer advocates, who warn of the severe financial and emotional harm inflicted on affected players.

Victims of unlicensed gambling sites speak out

Some UK customers have reported devastating losses due to these sites. One individual revealed they lost approximately £60,000, leading to severe emotional distress. In another case, a German player successfully sued an unlicensed operator after losing more than £200,000. The player said, "Those who run these casinos have stolen my life."

The nine sites identified in the investigation lack the legally required UK gambling licenses. Despite this, they continue to appear in search engine listings and receive promotion on social media. Between October and December last year, the five most popular websites collectively attracted around four million visits from UK users.

Allegations of unfair practices and fraudulent activity

Customers have accused these unregulated gambling platforms of unethical practices, including withholding winnings and exploiting problem gamblers. One such site, FatPirate, which advertises a welcome bonus of as much as £425, has received multiple complaints about preventing users from withdrawing their earnings. A customer from the UK claimed winning £6,000 after depositing £3,270 using their bank card, only to find themselves unable to retrieve their winnings.

Another player who used Gransino, another unlicensed site, reported that their account was deleted after they raised concerns about their inability to withdraw money. Customer support informed them that the matter was closed. "They take your money and never pay out," the player stated, adding that they felt "devastated." Both of these sites accepted Mastercard payments as recently as last week.

Regulatory response and industry reaction

The operators of these unlicensed sites, which are based overseas, did not make any comment. Meanwhile, both Visa and Mastercard insist they do not permit illegal activity and have pledged to investigate the findings.

The UK Gambling Commission, responsible for regulating the gambling sector, confirmed that it is aware of the websites in question and vowed to "continue to take action against them." However, the ongoing presence of these platforms raises concerns about regulatory enforcement and the effectiveness of existing measures.

Failure to block transactions raises questions

Visa and Mastercard previously agreed to block transactions linked to illegal operators in a 2014 voluntary agreement with the UK Gambling Commission. Under legal obligations, these payment giants must take measures to prevent the use of their networks for illicit activities. However, the latest findings suggest that their enforcement mechanisms may be inadequate.

A separate analysis of complaints to the Gambling Commission underscores the scale of the problem. According to documents obtained by Investigate Europe through freedom of information laws, there were at least 922 complaints regarding unlicensed gambling operators in the two years leading up to December. Several of these complaints specifically mentioned Mastercard and Visa. One gambler reported winning £70,000 on an unlicensed site that accepted Mastercard payments but was only able to withdraw a fraction of that amount.

Iain Duncan Smith, the all-party parliamentary group on gambling reform chair, described the findings as "deeply concerning." While acknowledging that most gambling-related harm stems from licensed operators, he stressed that regulators "must do more to clamp down on abuses by unlicensed operators."

He also warned that Mastercard and Visa risk giving credibility to unregulated gambling sites. "These companies must immediately up their game and start blocking all unlicensed gambling site transactions," he said.

Visa and Mastercard pledge investigation

Mastercard has since reaffirmed its commitment to eliminating illegal activities from its network. "We have zero tolerance for illegal activity," a spokesperson said. "Whenever issues are identified, we investigate and work with partners to take appropriate action. We will now do that with the sites you noted."

As pressure mounts on regulators and payment providers, the exposure of these practices demonstrates the urgent need for stricter oversight to protect consumers from the financial and psychological distress caused by unlicensed gambling sites.