Investigation Finds Mastercard and Visa Offered Alongside Crypto

Mastercard and Visa have come under fire for allegedly facilitating payments to unlicensed gambling websites specifically targeting UK customers.

An investigation, coordinated by Investigate Europe, has revealed that both companies have processed numerous transactions for sites accused of scamming users out of significant sums of money, despite previous commitments to blocking transactions with them.

Mastercard and Visa’s Alleged Involvement with Unlicensed Gambling Sites

Mastercard was found to be offered alongside digital currencies on nine crypto casino websites offering both sports betting and games. Visa was also available on two of the sites.

The sites are accused of explicitly targeting UK customers while lacking regulatory approval to do so. Since Mastercard and Visa earn a transaction fee on each deposit, critics have accused the payment giants of facilitating illegal activity and contributing to gambling harm in UK residents.

Investigate Europe found a network of unlicensed gambling sites operating across parts of Europe. The websites in question have been accused of refusing to pay customers’ winnings, deleting accounts, and targeting problem gamblers with promotional spam.

One case cited is a UK customer reportedly winning £6,000 after spending £3,720, who was subsequently blocked from withdrawing from their account. Another customer also told the investigation that after complaining about withdrawal issues, their account was closed without any explanation.

The UK Gambling Commission revealed it has received complaints about at least five of the websites in question. However, these sites remained acceptable and continued to accept payments from UK residents through Mastercard and Visa. Under the Freedom of Information Act (FOIA), the investigation found 922 complaints about the operators in the two years to December.

Responding to the allegations, a Mastercard spokesperson told The Observer it had a “zero tolerance for illegal activity” and that when issues were identified, it investigated them to “work with partners to take appropriate action.” The company claims it has no direct relationship with the gambling sites. Instead, the banks are responsible for ensuring merchants act within Mastercard’s rules and local laws.

Visa also said illegal activity was “explicitly and unequivocally” prohibited, and told the same publication: “We take this very seriously and investigate all reports of illegal activity.” It also suggested that it has no direct relationship with the operators in question.

Both Visa and Mastercard did not comment on an agreement with the UKGC to block unlicensed gambling transactions.

APPG Says Findings “Deeply Concerning”

The investigation’s findings have renewed pressure from the All-Party Parliamentary Group on Gambling Reform. Chairman Sir Iain Duncan Smith claimed the situation was “deeply concerning” and urged the two companies to block payments to unlicensed operators immediately.

It also attracted similar comments from pro-gambling groups, such as the Betting and Gaming Council, which used the news to warn that the illegal gambling market takes over £2.7 billion from UK residents alone.