Visa, Mastercard Strengthen Monitoring After Gambling Probe

The names of two global payment giants popped up after an investigation into a number of gambling websites which offered their services across Europe without a license. News regarding the probe, which was conducted by Investigate Europe, emerged from The Guardian over the weekend.

The probe sought to analyze the activities of gambling websites which targeted customers on the Old Continent without having the necessary gambling license. Reportedly, the investigation uncovered some websites used the services of payment giants, Visa and Mastercard.

Investigation Suggests Unlicensed iGaming Operators Use Legitimate Payment Platforms

Per the probe, Visa was available as a payment method on two websites targeting UK customers without holding the relevant license. On the other hand, Mastercard was also listed together with various cryptocurrency payment methods on nine such websites.

UK customers of those unlicensed operators were offered options for sports betting and casino games, while lucrative bonuses helped with customer onboarding. Concerningly, some of the unlicensed operators targeted individuals who have been excluded from gambling due to addiction, while others reportedly closed the accounts of customers who wanted to withdraw their winnings, leaving them with nothing but losses.

According to the recent report, one customer lost more than £200,000 ($259,000) using the services of an unlicensed operator. Despite the casino’s illegal status, the customer in question was able to file a legal complaint with a court in Germany. Other cases of customers affected by unlicensed operators included failure to withdraw winnings and other unlawful actions.

The Payment Providers Are Dedicated to the Integrity of Their Platforms

Even before the probe, both Visa and Mastercard pledged to discontinue transactions related to unlicensed gambling websites. The investigation that saw the name of the recognizable payment operators tangled into the gambling scandal immediately captured their attention.

A spokesperson for Visa, quoted by the media outlet PYMNTS, said that the platform remains committed to ensuring the integrity of its payment system. “We do not tolerate the use of our network and products for illegal activity, and we are vigilant in our efforts to deter illegal activity on our network,” the same spokesperson outlined.

A representative of Mastercard also commented. They outlined that the company enforces a “zero tolerance” policy when it comes to illegal activities conducted on its network. Moreover, the representative said that Mastercard will investigate itself the aforementioned websites.

Still, the payment platform’s spokesperson recognized that it isn’t directly involved with the merchants, highlighting that usually such payments are completed via an acquirer. The spokesperson elaborated further: “Acquirers are responsible for performing due diligence on their customers and ensuring the merchant is properly registered on our network, and acts lawfully, including obtaining and maintaining the required regulatory licenses to operate in all jurisdictions they do business.”

Finally, the spokesperson for Mastercard confirmed that it is the acquirer’s responsibility to ensure that their clients do business in compliance with the regulations established by the platform and do not use the network for unlawful transactions.