Mastercard and Visa are facing scrutiny for processing payments on illegal gambling websites that have allegedly scammed UK customers out of thousands of pounds.
A recent investigation revealed that both financial giants continue facilitating transactions on unlicensed gambling platforms, despite previous commitments to block such payments.
Mastercard and Visa Payments Found on Unlicensed Sites
Last week, Mastercard was listed as a payment option alongside cryptocurrency on nine gambling websites targeting UK players, while Visa was available on two of those platforms. These websites, operating without a required UK gambling license, have been accused of withholding winnings and exploiting problem gamblers.
One UK-based gambler reported losing £60,000 on an unlicensed site, describing the experience as life-destroying. Another individual successfully sued a gambling operator in Germany after losing more than £200,000.
Despite these concerns, the five most popular sites drew around four million UK visits between October and December. Many of these platforms appear in search engine results and are promoted on social media, making them easily accessible to players.
Customers Left Devastated After Winnings Blocked
Several users have complained that unlicensed operators refuse to pay out winnings. A customer of the site FatPirate, which offers a welcome bonus of up to £425, claimed they won £6,000 after spending £3,270 with a bank card—only to be denied withdrawal.
Another user reported that their account on the gambling site Gransino was deleted after they questioned why they couldn’t withdraw their winnings. When they contacted customer support, they were told the case was closed.
Regulatory Failures and Industry Response
The UK Gambling Commission has received multiple complaints about at least five of these sites but has struggled to shut them down. Unlicensed operators continue processing payments in sterling, offering UK-targeted deals such as bonuses of up to £1,800 and hundreds of free spins.
In 2014, Mastercard and Visa entered a voluntary agreement with PayPal and the Gambling Commission to block payments linked to unlicensed gambling operators. However, the latest findings suggest that these financial networks still facilitate transactions for illicit gambling sites with high traffic and alleged ties to scams.
Iain Duncan Smith, chair of the all-party parliamentary group on gambling reform, called the situation “deeply concerning,” urging Mastercard and Visa to take immediate action. “These companies must immediately up their game and start blocking all unlicensed gambling site transactions,” he said.
Payment Giants Defend Their Actions
Mastercard stated that it has “zero tolerance for illegal activity” and would investigate the reported sites. The company noted that banks, not Mastercard itself, are responsible for ensuring merchants comply with regulations.
Visa echoed similar sentiments, emphasizing that illegal activity is “explicitly and unequivocally prohibited” on its network. Both companies pledged to work with partners to enforce compliance.
A Growing Black Market Threat
The unlicensed gambling market in Britain is expanding, with at least 922 complaints filed against illegal operators in the past two years. Some users reported losing tens of thousands of pounds, with little recourse to recover their money.
Industry experts warn that the financial networks supporting these sites play a critical role in their continued operation. Professor Heather Wardle of the University of Glasgow stated that all parties involved in gambling transactions must be held accountable.
The Gambling Commission claims it has taken significant steps to disrupt the black market, issuing over 770 cease-and-desist notices and referring 100,000 URLs for removal. However, illegal operators often “phoenix” into new websites, making enforcement difficult.
A spokesperson warned UK players about the dangers of gambling on unlicensed sites. “Your financial data could be stolen, harvested, or misused, and you may not even be paid out if you win,” they said.
As pressure mounts on Mastercard and Visa, questions remain over how effectively regulators can combat unlicensed gambling. Until stricter measures are enforced, UK customers remain at risk of financial exploitation.
