EGBA Advocates for Stronger Measures Against Illegal Betting Sites

The complaint was filed following an investigation by the EGBA into illegal gambling websites and apps targeting European consumers. It references test transactions conducted during the investigation, which yielded evidence indicating that Walletto's services were used to facilitate deposits on several of these platforms.

Although the complaint concerns a single service provider, it highlights a broader issue across the entire payment chain. Illegal gambling operators cannot function on a large scale without access to payment systems—they rely on the same payment methods and card networks that consumers use daily. As long as illegal operators can accept deposits and process transactions, they will continue to operate outside legal EU licensing regimes, evading the oversight of national regulators and putting consumers at risk.

Illegal platforms fail to provide any of the safeguards required of regulated operators. Consumers who use them lack basic protection: there are no strict identity checks, no responsible gaming tools, no anti-money laundering controls, and no guarantees that their winnings will be paid out. Because effective identity verification is absent, minors and self-excluded individuals can access these sites unhindered.

In Latvia, the Industry Association Calls for Stricter Restrictions on Illegal Operators

"Payment service providers must not be allowed to process transactions for illegal gambling operators. Illegal operators thrive by exploiting legitimate financial channels and the widespread payment networks that consumers rely on every day. Our goal is simple: leave them no room to maneuver and cut off the payment channels they use to reach European consumers. Card schemes also play a crucial role in combating illegal transactions: they are better positioned than anyone else, as they set the rules for these payment networks and see transaction flows that no one else can," emphasized Maarten Haijer, Secretary General of the EGBA.

The Latvian Licensed Gambling Association (LLAB) is also advocating for increased pressure on illegal gambling, notes LLAB Executive Director Līga Līce. "Licensed operators in Latvia are urging the use of every available opportunity to combat the shadow economy in the sector and to restrict the operations of illegal websites to the maximum extent possible. This is achievable within the framework of existing regulations, including the restriction of payments," Līce emphasized.

Illegal operators exploit vulnerabilities throughout the entire payment chain—between payment service providers, acquirers, and card networks—to continue reaching European consumers. Addressing this issue requires a unified approach involving policymakers, gambling and financial regulatory authorities, payment service providers, acquirers, and card schemes. Card schemes, in particular, are uniquely positioned to take action: they set the rules for the networks through which payments to illicit platforms are routed, and they have access to transaction-level data that other stakeholders cannot see.

The EGBA is calling for stricter measures

The principle is simple: payment service providers should not process transactions for illegal gambling operators. The EGBA is calling for stricter measures to enforce this. Financial regulators should fully and consistently apply existing rules—such as the EU Payment Services Directive and anti-money laundering laws—to payment service providers. Card networks must also take the necessary steps to prevent payment service providers from using their networks to process illegal gambling transactions.

The EGBA will continue to advocate for coordinated action across the entire payment chain to exclude illegal operators from the European online gambling market.