Mastercard and Visa Under Scrutiny for Facilitating Transactions on Unlicensed UK Gambling Sites
Recent investigations have uncovered that major payment processors, Mastercard and Visa, have been facilitating transactions on unlicensed gambling websites targeting UK consumers. This revelation raises significant concerns about consumer protection and the effectiveness of existing regulatory measures.
Key Takeaways:
-
Mastercard and Visa's Involvement: Despite previous commitments to block transactions on unlicensed sites, Mastercard was a payment option on nine such websites, while Visa appeared on two.
-
Consumer Complaints: Users have reported substantial financial losses, including the inability to withdraw winnings and sudden account closures after raising complaints.
-
Regulatory Response: The UK Gambling Commission is aware of these unlicensed operations and is actively working to address the issue, including issuing cease and desist notices and collaborating with search engines to remove related URLs.
Extent of Mastercard and Visa Involvement
Mastercard and Visa reportedly earn fees from transactions processed on these unlicensed platforms, indicating a lapse in enforcing their policies against supporting unlicensed gambling operations.
Consumer Complaints and Financial Losses
Users of these unlicensed sites have reported substantial financial losses, including the inability to withdraw winnings and sudden account closures following complaints. One individual reported losing approximately £60,000, leading to severe emotional distress. These incidents highlight the risks consumers face when engaging with unregulated gambling platforms.
Regulatory Response from the UKGC
The UK Gambling Commission (UKGC) is aware of these unlicensed operations and is actively working to address the issue. Actions include issuing cease and desist notices and collaborating with search engines to remove related URLs. However, the persistence of these sites suggests that more stringent enforcement and oversight may be necessary to protect consumers effectively.
Industry and Expert Reactions
Iain Duncan Smith, chair of the all-party parliamentary group on gambling reform, expressed deep concern over these findings. He emphasised the need for payment processors to enhance their efforts to block transactions to unlicensed gambling sites. Similarly, Professor Heather Wardle from the University of Glasgow highlighted the complex ecosystem enabling unlicensed gambling. She stressed that all entities involved, including payment processors, should be held accountable for facilitating these operations.
Statements from Mastercard and Visa
In response to the allegations, Mastercard reiterated its zero-tolerance policy for illegal activities on its network and committed to investigating the identified sites to take appropriate action. Visa also emphasised that illegal activities are prohibited on its network and assured that it investigates all reports of such activities, working with partners to terminate services where necessary.
Conclusion
The involvement of major payment processors in transactions with unlicensed gambling sites underscores the challenges in regulating online gambling. It highlights the need for stringent enforcement of existing regulations and greater accountability among all parties in the payment processing chain. This is to protect consumers from potential scams and financial harm.
This story originally appeared in The Guardian.
Peter Wilson is the Editor-in-Chief at GamblingAuthority. He has more than nine years of experience from the iGaming industry and is a valuable resource for everything related to online casinos.
Read more about the authorLatest News
Comments
Comment Submitted for Review
Just now
Your comment has been submitted for moderator review. It will be posted shortly once approved