Mastercard and Visa are under scrutiny for processing payments on illegal gambling websites that have scammed UK customers out of thousands of pounds. Despite pledging to block such transactions, both companies continue to allow their networks to be used on unlicensed sites.
An investigation found Mastercard was listed as a payment option on nine gambling sites targeting UK players, while Visa was available on two of them. These websites operate without the necessary gambling licenses, yet they attract millions of UK visitors through search listings and social media promotions.
Victims have reported devastating financial losses. One UK gambler said they lost £60,000 without realizing they were on an unlicensed site. Another, from Germany, won a lawsuit against an operator after losing over £200,000. One site, FatPirate, has been accused of blocking withdrawals, with a customer claiming they won £6,000 but were unable to access the money. Another site, Gransino, allegedly deleted a user’s account after they complained about missing winnings.
Mastercard and Visa, which profit from these transactions through small fees, claim to prohibit illegal activity on their networks. However, the UK Gambling Commission has received hundreds of complaints about unlicensed operators using these payment services. At least five of the nine websites identified in the investigation remain operational, accepting UK customers and offering incentives like free spins and welcome bonuses.
Former Conservative leader Iain Duncan Smith called the findings “deeply concerning” and urged the payment companies to act. “These companies must immediately up their game and start blocking all unlicensed gambling site transactions,” he said.
Mastercard stated it has “zero tolerance for illegal activity” and promised to investigate. Visa also emphasized that illegal activity is “explicitly and unequivocally” prohibited on its network. Both companies said they do not directly partner with gambling sites but work with banks and financial institutions to enforce compliance.
The investigation also revealed that payments were processed through PaymentIQ, a tool used in high-risk industries to increase transaction approvals. Worldline, the French company behind PaymentIQ, described its platform as “neutral” and said it does not control customer funds.
Professor Heather Wardle of the University of Glasgow warned that the gambling industry has created a “wide and complex commercial ecosystem” that enables these scams. She stressed that every player in the financial chain should be held accountable.
The Gambling Commission says it has issued over 770 cease-and-desist orders and referred more than 100,000 URLs for removal in the past year. However, illegal operators often reappear under new names in a tactic known as “phoenixing.”
Officials warn that gambling on unlicensed sites puts customers at risk of fraud. The Betting & Gaming Council estimates that Britons spend more than £2.7 billion on these illegal platforms each year, calling the problem a “significant threat.”
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