Turkey Cracks Down on Payment Providers Facilitating Illegal Gaming

Turkey has cracked down on several payment firms believed to be connected to illegal iGaming. Dozens of individuals were arrested in the process, including the firms’ chairman.

Dozens of People Were Arrested

On Monday, the Turkish police made a total of 52 arrests in Istanbul as part of its crackdown on illegal gambling. The police took 21 people into custody, including Erkan Kork, chair of BankPozitif and digital payments firm PayFix.

The arrestees were accused of facilitating illegal online gambling, which is forbidden in Turkey.

According to Masak, the country’s Financial Crimes Investigation Board, PayFix processed some 50 million betting-related transactions. The firm handled approximately $110 million, which was directed to crypto exchanges.

According to prosecutors, Kork personally incorporated these illicit gambling operations into PayFix.

Kork’s Businesses Were Seized by the State

In the operation, which is part of a larger crackdown on illegal gambling, authorities seized assets worth $190 million. These included PayFix, as well as Flash TV, a media business affiliated with Kork.

The Banking Regulation and Supervision Agency (BDDK) confirmed that BankPozitif, which was acquired by PayFix a few years ago, was likewise seized by the state. The firm’s manaement was promptly transferred to the TMSF, Turkey’s Savings Deposit Insurance Fund.

According to the reports, Kork is currently facing charges of illegal gambling-related money laundering and facilitating illicit transactions.

The Central Bank Suspended Three Firms

As mentioned, the crackdown on Kork’s firms was part of a broader operation to shield Turke’s financial sector from fraud connected to illegal gambling.

Because of that, the Central Bank of the Republic of Türkiye (CBRT) opted to suspend PayFix’s operational licenses. The CBRT announced that it had also suspended the licenses of two other payment firms, namely Aypara and Ininal. These two businesses had been under investigation, which discovered instances of non-compliance with Turkish law.

Turkey’s Fight Against Illegal Gaming Continues

Turkey’s war on illegal gambling continues as the country seeks to eliminate businesses that undermine the integrity of its financial framework and expose citizens to harm.

At the start of the year, authorities said that they had identified and banned a staggering 233,000 illegal gambling sites in 2024 alone, which showcased the intensity of the efforts against illicit gaming.

Unfortunately, eliminating the black gambling market has proven to be an arduous task as illegal operators have continued to push hard and attract players who would have otherwise used legal lottery and sports betting services.   

Speaking about illegal gambling, Turkish pop singer Serdar Ortaç was recently sentenced to 10 months in prison and fined for promoting illegal gambling. For context, Ortaç was accused of leveraging his popularity to promote Malta-based gaming operations that were not legal in Turkey.

His sentence, however, was suspended and he was placed on probation.