The European Gaming and Betting Association has filed a formal complaint with the Bank of Lithuania, accusing a Lithuania-based payment service provider of processing payments linked to illegal online gambling operators.
The complaint follows an investigation by the association into illegal gambling websites and mobile apps targeting European consumers. During the investigation, test transactions were carried out that indicated the payment services of the accused provider were linked to deposits on several illegal gambling platforms.
The association has now asked Lithuania's financial regulator to examine the findings of the investigation, citing the importance of taking action against financial networks that help unlicensed gambling websites reach customers across Europe.
The issue, according to the association, stretches well beyond a single company, with illegal gambling businesses relying on access to widely used payment methods and established card networks to continue operating outside licensed regulatory systems across the European Union.
The association warns that players using illegal gambling sites can miss out on safeguards required from licensed operators, including stronger identity verification, safer gambling tools, and anti-money laundering controls.
Payment providers, the association argues, should not be allowed to process transactions for illegal gambling operators, as they exploit legitimate financial channels and mainstream payment networks relied upon by consumers every day.
The association's Secretary General, Maarten Haijer, emphasized that the aim is to leave no room for illegal operators to manoeuvre, and to cut off the payment channels they use to reach European consumers.
Haijer also highlighted the crucial role that card schemes play in combatting illegal transactions, as they set the rules for payment networks and have a unique perspective on transaction flows.
The latest complaint comes a year after the association backed a Court of Justice of the European Union ruling involving Lithuania's gambling advertising restrictions, which found that amendments expanding the ban were not properly notified to the European Commission.
The association has reiterated the importance of notifying draft gambling rules through the Technical Regulation Information System to ensure national laws comply with EU requirements, and for effective enforcement to depend on both proper legislative procedures and consistent action from financial regulators, payment providers, acquiring banks, and card schemes.
