EGBA asks the Bank of Lithuania to examine Walletto over alleged payments linked to illegal online gambling operators
Europe’s illegal online gambling problem is moving further into the payments chain, with EGBA calling for tougher action against the financial channels that support unlicensed operators.
The European Gaming and Betting Association has filed a formal complaint with the Bank of Lithuania against Walletto, a Lithuania-based payment service provider. The complaint concerns the alleged processing of payments linked to illegal online gambling operators.
EGBA said the complaint follows an investigation into illegal gambling websites and apps targeting European consumers. As part of that investigation, test transactions were carried out. According to EGBA, those transactions found evidence suggesting Walletto’s services were used in connection with deposits on a number of illegal platforms.
The complaint concerns one payment provider, but EGBA said it points to a wider problem across Europe’s payments chain. Illegal gambling operators need access to payment services to operate at scale. They rely on mainstream payment methods and card networks that consumers use every day.
As long as those operators can accept deposits and process transactions, EGBA said they can continue to operate outside legally compliant licensing regimes in the EU. That allows them to avoid regulatory controls and expose consumers to risk.
Illegal gambling platforms do not offer the safeguards required of regulated operators. Players using them may not receive proper identity checks, safer gambling tools, anti-money laundering controls or any guarantee that winnings will be paid. EGBA also warned that weak identity checks can allow minors and self-excluded players to access illegal sites.
The association said illegal operators exploit weaknesses across the payments chain, including payment service providers, acquirers and card networks. It called for a more coordinated approach involving policymakers, gambling regulators, financial regulators, payment service providers, acquirers and card schemes.
EGBA said card schemes have a particular role because they set the rules for the networks through which payments to illegal platforms flow. They also have access to transaction-level data that other stakeholders may not be able to see.
The association’s central message is that payment providers should not process transactions for illegal gambling operators. EGBA wants financial regulators to enforce existing rules, including the EU Payment Services Directive and anti-money laundering laws, more fully and consistently. It also wants card schemes to take steps to prevent their networks being used for illegal gambling transactions.
Maarten Haijer, Secretary General of EGBA
“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 combatting 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.”
The complaint adds pressure on financial and gambling regulators to work more closely on illegal gambling enforcement. For licensed operators, the case highlights a familiar problem: unlicensed competitors can target European consumers while avoiding licensing costs, compliance duties, tax obligations and player protection rules.
For payment companies, it raises questions about due diligence, merchant monitoring and the ability to detect gambling transactions linked to unlicensed operators.
EGBA said it will continue pushing for coordinated action across the payments chain to shut illegal operators out of Europe’s online gambling market.
EGBA is based in Brussels and represents leading online gambling operators established, licensed and regulated in the EU. Its members collectively hold 401 online gambling licences across 22 European countries and account for around 30% of Europe’s online gambling gross gaming revenue.
