EGBA files complaint over alleged payments to illegal gambling sites

The European Gaming and Betting Association (EGBA) has filed a formal complaint with the Bank of Lithuania against payment service provider Walletto over alleged links to transactions involving illegal online gambling operators.

EGBA said its complaint followed an investigation into gambling websites and applications targeting European consumers. The association stated that test transactions conducted during the investigation indicated that Walletto’s payment services had been used to process deposits on several platforms it considers illegal.

The complaint concerns a single Lithuania-based provider, but EGBA said it reflects a broader issue involving payment service providers, acquirers and card networks.

The association argued that unlicensed operators depend on access to mainstream payment channels to accept deposits and continue serving consumers across Europe.

With this in mind, EGBA called for more coordinated action by financial regulators, gambling regulators, payment providers and card schemes. It said financial authorities should consistently enforce existing obligations under the EU Payment Services Directive and anti-money laundering rules where payment providers are found to be processing transactions for illegal operators.

The association also highlighted the role of card schemes, which set network rules and have access to transaction-level data. EGBA Secretary General Maarten Haijer said payment providers should not be permitted to process transactions for illegal gambling operators and that card schemes were particularly well placed to identify and prevent such activity.

The complaint follows other recent EGBA initiatives targeting illegal gambling in Europe, including its call for EU action on fraudulent gambling sites and apps, its warning that a proposed EU gambling levy could inadvertently benefit illegal operators, and its welcoming of the new European standard on gambling harm markers.