Mastercard and Visa under scrutiny for facilitating illegal gambling payments in the UK

Mastercard and Visa are facing criticism after an investigation revealed the payment processing giants facilitated transactions for unlicensed gambling websites, which allegedly defrauded UK customers of thousands of pounds.

An investigation led by Investigate Europe found that Mastercard and Visa enabled transactions on nine unlicensed gambling websites targeting UK customers. Despite a previous pledge to prevent their networks from being used for illegal activities, both companies were found to be processing payments on websites offering casino games and live sports betting without the required licenses.

Last week, nine gambling sites displayed Mastercard as a payment option alongside cryptocurrency, while Visa was offered as a method on two of these sites. Both companies are understood to earn a small fee with each transaction made through their networks.

The nine websites, which do not hold the legally required gambling licenses, continued to appear in search listings and were actively promoted on social media. The five most popular sites drew approximately four million visits from UK users between October and December last year. These sites have been accused of practices including refusing to pay out winnings and targeting problem gamblers with spam.

One site, FatPirate, which advertises a welcome bonus of up to £425, has been the subject of several complaints from customers who say they were unable to withdraw their winnings. A UK customer reported winning £6,000 ($7,759) after spending £3,270 ($4,228) using their bank card, only to find they could not access their funds.

Another customer of the unlicensed site Gransino alleged their account was deleted after they raised concerns about their inability to withdraw winnings. Customer support then informed them that “it was the end of the matter.” They described feeling “devastated” by the experience. Both websites offered Mastercard as a payment method.

Customers shared harrowing experiences, including a person who lost £60,000 ($77,592) on an unlicensed site and was left feeling suicidal. Another individual pursued legal action in German courts after losing more than £200,000 ($258,641), stating: “Those who run these casinos have stolen my life.”

Iain Duncan Smith, chair of the all-party parliamentary group on gambling reform, expressed concern over the findings. He stated that while most online gambling harm stems from licensed operators, more robust action is needed against unlicensed operators. “These companies must immediately up their game and start blocking all unlicensed gambling site transactions,” he said.

The UK Gambling Commission, responsible for regulating gambling activities in Great Britain, acknowledged the issue and stated it was actively investigating the sites. The commission has received complaints about at least five of the nine identified websites but has yet to take action to block them.

According to the commission, there were 922 complaints about unlicensed operators in the two years leading up to December 2024, with several complaints specifically mentioning Mastercard and Visa.

In response, Mastercard reiterated its “zero tolerance for illegal activity” on its network and confirmed it would investigate the sites identified in the report. Visa stated that illegal activity on its network is “explicitly and unequivocally” prohibited, adding that the company consistently works with partners to ensure compliance.

The payment processing on these gambling sites was managed through PaymentIQ, a tool owned by the French payment services company Worldline, an investigation done by Observer revealed. Worldline described PaymentIQ as a “neutral” software solution that does not control customer funds or process payments directly. The company stated that it bears no responsibility for ensuring merchants comply with legal obligations.

The Gambling Commission stated that it is actively working to disrupt the unlicensed gambling market. Over the past 11 months, the commission has issued more than 770 cease and desist notices and referred over 100,000 URLs to Google for removal.