Industry Association Warns of Broader Systemic Vulnerabilities Across Europe’s Financial Processing Chain
The European Gaming and Betting Association (EGBA) has filed a formal complaint with the Bank of Lithuania against local payment service provider Walletto. The complaint alleges that the provider processed payments linked to illegal online gambling operators targeting European consumers.
The action follows an extensive EGBA investigation into unlicensed gambling websites and mobile applications. During this investigation, researchers conducted test transactions that yielded evidence suggesting Walletto’s financial services were actively being used to deposit funds on several of these illegal platforms.
Systemic Vulnerabilities in the Payment Processing Chain
While the current complaint focuses on a single provider, the EGBA stresses that the issue reflects a widespread, systemic vulnerability across the European payments ecosystem. Illegal gambling operators cannot scale their businesses without reliable access to transaction pipelines; they depend heavily on the same mainstream card networks and payment methods that everyday consumers use.
When financial intermediaries fail to filter out unauthorized operators, these black-market platforms can continue to bypass local licensing regimes, evade tax controls, and expose consumers to substantial harm.
Player Safeguards: Regulated vs. Unlicensed Markets
Unregulated platforms operate entirely outside the legal boundaries of the EU, failing to offer the basic protective frameworks required of licensed operators.
| Operational Safeguard | Regulated Operators (EU Licensed) | Unlicensed / Illegal Operators |
| Identity Verification | Robust, mandatory checks to prevent minor and fraud access. | Non-existent or weak; accessible to minors and self-excluded users. |
| Responsible Gaming Tools | Deposit limits, session reminders, and self-exclusion links. | No safer gambling tools or self-protection features. |
| Financial Safeguards | Guaranteed payouts of winnings under strict regulatory oversight. | Zero guarantees or legal recourse for players to reclaim funds. |
| Financial Crime Controls | Strict, auditable Anti-Money Laundering (AML) protocols. | No standard AML or counter-terrorist financing controls. |
Calls for Targeted Financial and Regulatory Enforcement
The EGBA argues that resolving these payment leakages requires a coordinated effort among policymakers, financial watchdogs, gambling regulators, and card networks.
Because card schemes establish the operating rules for the global networks where these payments occur, they possess unique transaction-level data that other stakeholders cannot see. This puts them in an ideal position to act as gatekeepers.
The EGBA is calling for a two-pronged strategy to protect consumers:
- Regulator Enforcement: National financial regulators must strictly enforce existing legal frameworks, including the EU’s Payment Services Directive and anti-money laundering regulations, against non-compliant payment networks.
- Card Scheme Oversight: Major card schemes must enforce their own internal rules to actively block payment providers from utilizing their rails to process unauthorized gambling transactions.
Executive Perspective: “No Room to Manoeuvre”
Maarten Haijer, Secretary General of the EGBA, emphasized that cutting off financial access is the most effective way to protect European consumers from illegal operators:
“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 EGBA has confirmed it will continue to advocate for stronger, coordinated action across all levels of the financial services sector to permanently shut unlicensed operators out of the European online gambling market.
