The Central Bank of the Republic of Turkey (TCMB) has revoked the operating licence of Papel Elektronik Para ve Ödeme Hizmetleri, an electronic money and payment services provider that has been subject to an investigation involving alleged laundering of illegal betting proceeds.
The decision, published in Turkey’s Official Gazette, withdraws the electronic money institution licence granted to Papel in October 2022. TCMB cited provisions of Law No. 6493 covering the conditions required to retain authorisation and circumstances where continued activity is considered a threat to payment security. The published decision did not separately detail the factual findings behind the revocation.
Papel had already become the subject of enforcement action in January, when authorities launched an investigation into allegations that proceeds from illegal betting, illegal forex activity and fraud had been channelled through electronic money systems. The Savings Deposit Insurance Fund (TMSF) was appointed as trustee to the payment provider during the investigation.
The investigation resulted in an indictment against 44 suspects in June, with prosecutors seeking prison sentences ranging from nine to 27 years. The case remains subject to judicial proceedings and the allegations have not been established by a final court judgment.
According to information contained in the indictment, MASAK and TCMB reports identified approximately TRY1.5bn ($36.4m) in transfer volume under examination.
A TCMB audit cited in the indictment identified 43,488 customers connected with 238 accounts that Turkey's Payment and Electronic Money Institutions Association had reported as associated with illegal betting.
The regulatory action comes as Turkish authorities increase scrutiny of payment channels linked to unlicensed gambling. Turkey is implementing a 2025-2026 action plan coordinated by MASAK targeting illegal betting, games of chance and gambling in digital environments.
Enforcement has also expanded beyond payment flows. From August, Turkey broadened its advertising prohibition to cover promotions for illegal games of chance, adding to existing restrictions on illegal betting and gambling advertising.
Spain has also introduced additional controls over online gambling payments this year, although through a player-protection framework. Its joint deposit limit system replaces operator-specific caps with centralised limits applying across a player's licensed gambling accounts.
Turkey's illegal gambling framework allows authorities to pursue payment intermediaries involved in unauthorised games, alongside operators and those promoting illegal gambling
