EGBA files complaint against Lithuanian payment provider

The European Gaming and Betting Association (EGBA) has lodged a complaint with the Bank of Lithuania against Walletto, a Lithuania-based payment service provider, for allegedly processing payments linked to illegal online gambling operators. This complaint follows an EGBA investigation into websites and applications targeting European consumers.

Test transactions were detected during the investigation, suggesting that Walletto's services were used for deposits on several of these platforms. While the complaint focuses on a single provider, it highlights a broader issue throughout the European payment chain. Illegal gambling operators cannot operate on a large scale without access to payments, as they rely on the same payment methods and card networks regularly used by consumers.

Issue in the Payment Chain

Illegal operators can continue to operate outside the EU regulatory framework as long as they can accept deposits and process transactions. This allows them to evade regulatory checks and expose consumers to risks. Unlike regulated operators, these platforms do not provide necessary protections: there are no robust identity verifications, responsible gaming tools, anti-money laundering controls, or guarantees of winning payouts.

The lack of effective identity checks enables minors and self-excluded players to gain unfettered access.

Call for Coordinated Action

The issue is not limited to a single link in the chain but requires a coordinated approach among legislators, gaming and financial regulators, payment service providers, and card networks. The latter are in a privileged position to act, as they set the rules for the networks through which payments flow to illegal platforms and possess transaction-level data that other actors cannot see.

EGBA is calling for stronger action to address this situation, urging financial regulators to fully enforce existing regulations, such as the EU Payment Services Directive and anti-money laundering laws. Card networks must prevent providers from processing illegal payments.

"Payment providers should not allow the processing of transactions for illegal operators," said Maarten Haijer, Secretary General of EGBA. "Our aim is clear: to cut off the payment channels that these operators use to reach European consumers."

EGBA will continue to push for coordinated actions to exclude illegal operators from the European online gaming market.