EGBA Complaint Against Walletto: Allegations of Illegal Gambling Payments

The European Gaming and Betting Association (EGBA) has filed a formal complaint with the Bank of Lithuania against payment service provider Walletto. The organization accuses the company of processing payments for unlicensed online gambling platforms targeting European consumers. These allegations, which became public on July 10, are based on the EGBA's own test transactions on illegal gambling websites and apps. Walletto has since responded publicly, denying any conscious support for illegal gambling and stating that an internal review has been initiated.

Walletto published two responses in the comments section below a LinkedIn post sharing the original report on the complaint. The company emphasized that it does not consciously support, facilitate, promote, or enable illegal gambling activities in any form. This principle is fundamental to its business, compliance culture, and responsibilities as a regulated financial institution.

Numbers and facts

The EGBA's complaint was filed on July 10, based on its own investigation using test transactions. It implies that Walletto allegedly handled payments for several unlicensed platforms. Walletto, as an e-money institution, processes a large volume of transactions for a diverse customer base. The company asserts that it has extensive compliance, monitoring, and due diligence controls designed to prevent misuse, but acknowledges that no system is infallible.

“Walletto is aware of recent public allegations suggesting that its services may have been used in connection with unlicensed or illegal gambling activities. These allegations have been reported in the media and raised with relevant authorities. We take such matters extremely seriously. First and foremost, Walletto wishes to make its position unequivocally clear: Walletto does not support, facilitate, promote, or knowingly enable illegal gambling in any form. This principle is fundamental to our business, our compliance culture, and our responsibilities as a regulated financial institution.” - Walletto Statement on LinkedIn

The EGBA emphasizes that illegal operators can continue to reach European consumers as long as they have access to mainstream payment methods and card networks. It calls for a coordinated approach from policymakers, gambling and financial regulators, payment service providers, acquirers, and card networks. In particular, card networks should play a key role, as they set the rules for the networks and have access to transaction-level data.

Background

The dispute between EGBA and Walletto is part of a broader initiative aimed at disrupting the financial infrastructure of illegal gambling sites. The EGBA, as an advocacy group for regulated online gambling operators in Europe, has been fighting against the black market for years. It argues that the existence of illegal providers undermines player protection, leads to lost tax revenue, and damages the reputation of the entire industry.

Illegal gambling poses significant risks to consumers and undermines regulatory frameworks. It can make the financial system vulnerable to abuse. Walletto stated that it fully supports efforts by regulators, law enforcement authorities, payment networks, and industry participants to address these risks and combat unlawful activity.

Although Walletto announced an internal review, the company did not disclose which merchants or transaction flows are involved, whether any commercial relationships have been suspended, or when the results can be expected. iGaming Express has directed these questions to Walletto and is awaiting further response.

Why it matters for German players

For German players who only play at GGL-licensed casinos, such cases are relevant. The Joint Gambling Authority of the Federal States (GGL) is actively working to channel players into the legal market and combat illegal gambling. If payment service providers unknowingly or knowingly process transactions for unlicensed providers, this will hinder the GGL's efforts to strengthen the legal market and protect players.

German players should therefore always check whether an online casino holds a valid GGL license. This is the only way to ensure compliance with the strict requirements of the German Interstate Treaty on Gambling (GlüStV 2021). These include a monthly deposit limit of 1,000 euros, a stake limit of 1 euro per spin on slots, and connection to the central self-exclusion system LUGAS. These measures serve player protection and the prevention of gambling addiction. Platforms without a GGL license evade these protective mechanisms and offer players no legal certainty.

What it means for GGL-licensed casinos

For GGL-licensed casinos, this incident underscores the need to carefully select their payment partners and thoroughly review their compliance processes. Any failure in partner selection can, in the worst case, endanger their own license and undermine the credibility of the legal offering. The GGL places great emphasis on compliance with all regulations, even indirectly through service providers. This reinforces the GGL's approach to resolutely combat the black market and hold all actors accountable who facilitate illegal gambling. It is to be expected that the GGL will scrutinize more closely which payment service providers collaborate with which gambling providers in the future, to identify and prevent potential misuse at an early stage. Security and transparency are crucial here.