It’s highly likely that they aren’t aware of the fact, but even so banking giants Visa and Mastercard have been processing thousands of payments by illegal websites operating on UK soil.
Although the two operators have strategies in place to prevent their credit cards being used for nefarious activities, an investigation has revealed that nine unlicensed betting sites are still welcoming transactions made via Visa and Mastercard.
The situation has been unravelled by Investigate Europe, a network of investigative journalists around the continent. They found that scores of illegal gambling sites are operating on European soil without the necessary licenses… including the nine detailed in the UK.
And the blacklisted firms allowed their customers to use Visa and Mastercard to make deposits and withdrawals… ensuring access to the black market is so much easier.
Illegal Activity
Although the nine illegal sites don’t have a UK gambling licence – prohibiting them from operating here, they still appear in search engines and are even allowed to promote their services on social media sites.
And the extent of those marketing efforts saw a mind-boggling four million visits to the illegal sites recorded in the last quarter of 2024 alone. That alone makes you wonder how they continue to operate illegally in plain sight.
What’s more, the Investigate Europe sting was able to learn, via freedom of information requests, that nearly 1,000 consumer complaints have been made against offshore betting operators in just two years.
These black market sites are not held to the same standards as those licensed by the UK Gambling Commission, so players are warned to steer clear at all costs. The Investigate Europe probe found that the illegal operators were failing to pay out on some withdrawal requests; including one British punter who is still waiting for their £6,000 winnings to be sent. They had previously deposited £3,000 using their credit card.
Another customer claims that their account was ‘deleted’ after they tried to complain about their unpaid winnings. When they contacted the firm’s customer support team, they were told that the matter was closed – with no payment made.
The nine illegal operators currently targeting UK customers have also continued to send marketing content to problem gamblers that have already enrolled in GamStop.
In each of these examples, Visa and Mastercard were welcomed as a payment method by the illegal sites in question – a PR own goal for the multinational corporations.
Since the investigation came to light, they have both claimed that they prohibit illegal activity on their payment network, and would look into the claims made against the nine operators named.
It’s been a decade since Visa and Mastercard, as well as PayPal, entered into a voluntary agreement to block payments to unlicensed gambling operators. They already have a legal obligation to weed out ‘criminal activity’.
It’s a double-remit that they are, clearly, failing to meet.
A spokesperson from Mastercard has claimed that the firm’s integrity team would be looking into the revelations made in the investigation, although they suggested that it was banks that could do more to ensure that their merchants are operating legally.
Visa, meanwhile, confirmed that they have no direct relationship with merchants that accept the firm’s credit cards as a payment method. However, a spokesperson said:
“We take this very seriously and investigate all reports of illegal activity.”
Black Market Bonanza
While Visa and Mastercard have an obligation to tackle illegal betting operators, the spotlight also falls on the UK Gambling Commission too.
And The Guardian has reported that they have received complaints about five of the nine illegal sites named – but have yet to action any shutdown measures.
But as of last week, they were all accessible to punters based in the UK – and welcoming deposits made via Visa and Mastercard.
The regulator has revealed that they will be looking to take action against the black market operators named in the report.
“We are aware of these websites and continue to take action to disrupt the unlicensed market, including working with online platforms and with payment providers,” a source at the Gambling Commission confirmed.
“Anyone gambling on unlicensed sites is supporting illegal activity and putting themselves at risk. These sites support crime and won’t have the standards or safeguards we insist on such as providing self-exclusion or looking out for and tackling gambling related harm.”
Neither Visa nor Mastercard are obliged to check if their merchants are licensed to operate within a particular geographical market or not. But the Gambling Commission is… and given the number of complaints made about illegal betting sites, you wonder if they’re doing enough to stamp out this increasingly pervading issue.