EGBA demands tough action against illegal gambling payments

The European Gaming and Betting Association (EGBA) is raising the alarm. It is calling on payment service providers across Europe to take decisive action against illegal gambling operators. This is a clear message to all those involved in money transfers in the gambling sector.

Specifically, the EGBA has filed a complaint with the Bank of Lithuania against the payment service provider Walletto. The company is accused of processing payments for illegal online gambling operators. The incident highlights a fundamental problem across the entire payment value chain.

Numbers and facts

The complaint against Walletto is the result of a comprehensive EGBA investigation. This investigation involved conducting test transactions on illegal gambling websites and apps targeting European consumers. The EGBA found evidence suggesting Walletto's services were used in connection with deposits on a number of these illegal platforms. EGBA members collectively hold 401 online gambling licenses across 22 European countries. They account for approximately 30 percent of Europe's online gambling Gross Gaming Revenue (GGR).

Background

Illegal gambling operators rely on access to payment services to operate on a large scale. They use the same common payment methods and card networks that consumers use daily. As long as these illegal operators can accept deposits and process transactions, they will operate outside legally required licensing systems. This means they circumvent regulatory controls and harm consumers.

Illegal platforms do not offer the safeguards required of regulated operators. Players on these sites have no basic protection. There is often no reliable identity verification, no tools for safer gambling, and no anti-money laundering controls. Payouts of winnings are also not guaranteed. Without effective age and identity checks, minors and self-excluded players can access these sites unimpeded.

The EGBA therefore calls for a more coordinated approach. Politicians, gambling and financial regulators, payment service providers, acquirers, and card networks must work together. Card networks, in particular, could play a key role here. They set the rules for the networks through which payments to illegal platforms flow and have access to transactional data that other actors cannot see.

Maarten Haijer, Secretary General of EGBA, clearly stated this: > “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.” - Maarten Haijer, Secretary General of EGBA

The EGBA will continue to push for coordinated action across the payment chain. This aims to shut illegal operators out of Europe's online gambling market.

Why it matters for German players

For German players, this means that pressure on illegal online gambling providers could also increase in Germany. The Gambling State Treaty 2021 (GlüStV 2021) has created clear regulations here. Only casinos on the so-called GGL whitelist, which have been checked and licensed by the Joint Gambling Authority of the Federal States (GGL), are allowed to legally offer their services in Germany. These licensed providers adhere to strict rules: a stake limit of 1 euro per spin on online slot machines and a monthly deposit limit of 1,000 euros, managed via the central player blocking system LUGAS. If payment service providers cut off funding to illegal sites, it will be much harder for unregulated providers to reach players from Germany. Players would be wise to choose only casinos listed on the GGL whitelist to be protected and legally safe. All other offers are simply illegal.

What it means for GGL-licensed casinos

For GGL-licensed casinos, the EGBA's demands are good news. Effective suppression of illegal payments strengthens the regulated market. GGL casinos invest heavily in player protection measures, data integrity, and compliance with strict requirements. If illegal competition is cut off from payment flows, legal providers can strengthen their position. This will hopefully lead to fairer competitive conditions. Moreover, it protects players who consciously choose a safe and regulated gaming experience. Trust in the legal market will be strengthened, which will benefit all parties involved in the long run.