Complaint filed against European fintech over alleged illegal gambling payments
The European Gaming and Betting Association has taken the step of naming a provider it says has processed payments linked to various illegal online gambling operators.
Lithuania.- The European Gaming and Betting Association (EGBA) has filed a complaint against a Lithuanian fintech for allegedly processing payments linked to illegal online gambling operators. The industry group has lodged a complaint against Walletto with the Bank of Lithuania following its own investigation, which included the use of test transactions.
Although the complaint names one specific provider, the trade body said the case is an example of a wider problem, arguing that illegal gambling operators would not be able to operate at scale without access to the same mainstream payment methods and card networks used for other forms of consumption.
It has called for a more coordinated approach from policymakers, gambling and financial regulators, payment service providers, acquirers and card schemes. It suggested that card schemes in particular are uniquely placed to act since they set the rules for the networks through which payments to illegal platforms flow and have access to transaction-level data that other stakeholders cannot see.
“Financial regulators should fully and consistently enforce existing rules – such as the EU’s Payment Services Directive and anti-money laundering laws – against payment providers,” it said. “Card schemes should also take the necessary steps to prevent payment providers from using their networks to process illegal gambling transactions”
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Maarten Haijer, Secretary General of EGBA, said: “Payment providers should not be allowed to process transactions for illegal gambling operators. Illegal operators flourish by exploiting legitimate financial channels and the mainstream payment networks that consumers rely on every day.
“Our aim is simple: to leave them no room to manoeuvre, and to cut off the payment channels they use to reach European consumers. Card schemes also have a crucial role to play in combating illegal transactions: they are better placed than anyone, as they set the rules for these payment networks and see transaction flows no one else can.”
