{"id":7843,"date":"2026-10-22T14:10:00","date_gmt":"2026-10-22T11:10:00","guid":{"rendered":"https:\/\/legalbit.top\/en\/?p=7843"},"modified":"2026-10-23T15:58:49","modified_gmt":"2026-10-23T12:58:49","slug":"gambling-payment-laundering","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/gambling-payment-laundering\/","title":{"rendered":"Illegal Gambling Through Other Businesses\u2019 Card Payments: How the Scheme Works and Who Is Liable"},"content":{"rendered":"\n<div class=\"lbm\"><svg width=\"0\" height=\"0\" style=\"position:absolute\" aria-hidden=\"true\"><symbol id=\"i-list\" viewBox=\"0 0 24 24\"><path d=\"M9 6h11M9 12h11M9 18h11\"\/><path d=\"M4 6h.01M4 12h.01M4 18h.01\"\/><\/symbol><symbol id=\"i-user\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"8\" r=\"4\"\/><path d=\"M4 21c0-4 3.6-7 8-7s8 3 8 7\"\/><\/symbol><symbol id=\"i-ban\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M5.6 5.6l12.8 12.8\"\/><\/symbol><symbol id=\"i-layers\" viewBox=\"0 0 24 24\"><path d=\"M12 3l9 5-9 5-9-5z\"\/><path d=\"M3 13l9 5 9-5\"\/><\/symbol><symbol id=\"i-eye\" viewBox=\"0 0 24 24\"><path d=\"M2 12s4-7 10-7 10 7 10 7-4 7-10 7S2 12 2 12z\"\/><circle cx=\"12\" cy=\"12\" r=\"3\"\/><\/symbol><symbol id=\"i-doc\" viewBox=\"0 0 24 24\"><path d=\"M7 3h8l4 4v14H7z\"\/><path d=\"M15 3v4h4M10 12h6M10 16h6\"\/><\/symbol><symbol id=\"i-pen\" viewBox=\"0 0 24 24\"><path d=\"M4 20l4-1 11-11-3-3L5 16z\"\/><path d=\"M14 6l3 3\"\/><\/symbol><symbol id=\"i-alert\" viewBox=\"0 0 24 24\"><path d=\"M12 3l10 18H2z\"\/><path d=\"M12 10v4M12 17.5h.01\"\/><\/symbol><symbol id=\"i-bulb\" viewBox=\"0 0 24 24\"><path d=\"M9 18h6M10 21h4\"\/><path d=\"M12 3a6 6 0 0 0-3.5 10.9c.6.5 1 1.2 1 2.1h5c0-.9.4-1.6 1-2.1A6 6 0 0 0 12 3z\"\/><\/symbol><symbol id=\"i-info\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 11v5M12 8h.01\"\/><\/symbol><symbol id=\"i-coin\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M14.5 9.5c-.5-1-1.5-1.5-2.5-1.5-1.4 0-2.5.8-2.5 2s1.1 1.6 2.5 2 2.5.8 2.5 2-1.1 2-2.5 2c-1 0-2-.5-2.5-1.5M12 6.5v11\"\/><\/symbol><symbol id=\"i-clock\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 7v5l3 2\"\/><\/symbol><symbol id=\"i-globe\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M3 12h18M12 3c2.5 2.7 3.8 5.7 3.8 9s-1.3 6.3-3.8 9c-2.5-2.7-3.8-5.7-3.8-9S9.5 5.7 12 3z\"\/><\/symbol><\/svg><section class=\"lbm-intro\"><div class=\"lbm-intro-main\"><p class=\"lbm-lead\">Illegal gambling businesses rarely accept payments under their own name. More often players\u2019 card payments pass through someone else\u2019s ordinary-looking business, and that is exactly what card schemes and banks hold acquirers and payment companies to account for. We go through, according to primary sources, how such a scheme works, what Visa and Mastercard require, how the US Department of Justice case ended, and what a payment provider should do so as not to end up as a defendant.<\/p><p class=\"lbm-verified\">Checked on 22 October 2026. Rules and sources are current as of this date.<\/p><ul class=\"lbm-toc\"><li><a href=\"#scheme\">How the scheme works<\/a><\/li><li><a href=\"#rules\">What the card schemes require<\/a><\/li><li><a href=\"#liab\">Who is liable<\/a><\/li><li><a href=\"#practice\">Practice<\/a><\/li><li><a href=\"#signs\">Warning signs<\/a><\/li><li><a href=\"#contract\">Contracts and controls<\/a><\/li><li><a href=\"#case\">Case analysis<\/a><\/li><li><a href=\"#choose\">What to do<\/a><\/li><li><a href=\"#faq\">FAQ<\/a><\/li><\/ul><\/div><\/section><section id=\"scheme\"><h2>How the scheme works<\/h2><p style=\"max-width:70ch\">The scheme is built to make gambling payments look like payments for ordinary goods.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>A front business<\/h3><p>In the case the US Department of Justice made public in April 2011, the indictment alleged that US players\u2019 payments were routed as payments to hundreds of nonexistent online merchants, for example selling jewellery and golf balls. Processors created phony corporations and websites for this.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>Deceiving banks<\/h3><p>According to the Department of Justice, a processor told banks that accounts would be used for payday loans or internet membership clubs, while poker payments actually ran through them. He also offered failing banks investments in exchange for agreeing to process such transactions.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Transaction laundering<\/h3><p>Visa describes this practice as transaction laundering, or factoring. An unknown business processes payments through an approved merchant\u2019s credentials for undisclosed goods or services. We wrote about this in detail <a href=\"\/en\/transaction-laundering-and-miscoding\/\">in our article on transaction laundering and miscoding<\/a>.<\/p><\/div><\/div><\/section><section id=\"rules\"><h2>What the card schemes require<\/h2><p style=\"max-width:70ch\">Card schemes do not ban gambling, but they allow it only under a special status.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><h3>Visa and high integrity risk<\/h3><p>Visa places gambling in the High Integrity Risk category, Tier 1, the strictest. MCC 7995 is used, for card-absent transactions only. An acquirer must obtain registration from Visa before it starts soliciting such sellers, and approval is granted separately for each category.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Registering the seller<\/h3><p>A Tier 1 seller must be registered with Visa before submitting transactions. The acquirer carries out enhanced due diligence, attests to Visa that the seller passed it, updates the registration when details change, for example website addresses, and confirms annually that its controls work.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>Mastercard<\/h3><p>An acquirer that handles sellers accepting non-face-to-face gambling (MCC 7801, 7802 and 7995) must register them with Mastercard as specialty merchants (Section 9.1 of the Security Rules and Procedures). Before acquiring such transactions under Section 9.4.2, it must register the seller and obtain from the licensing authority of each applicable jurisdiction a copy of the seller\u2019s gambling licence, and furnish it to Mastercard. The transactions are identified with MCC 7995 and TCC (transaction category code) U, and MCC 7801 or 7802 may be used instead if the seller is additionally registered.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-globe\"\/><\/svg><\/span><h3>The law<\/h3><p>Transactions must be legal in both the merchant\u2019s and the cardholder\u2019s jurisdiction (VARS, AACQ.C18). In the US, the UIGEA, 31 U.S.C. 5363, prohibits those in the business of betting from knowingly accepting payments, including credit card charges, from participants in unlawful internet gambling. In Brazil, under Provisional Measure No. 1,394, banks and payment institutions may not process transactions for fixed-odds betting, and <a href=\"\/en\/brazil-betting-ban\/\">we covered this in our article on the betting ban<\/a>.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Our takeaway<\/b><p>For an acquirer, gambling is a registered and costly category. That gives an illegal operator an incentive to hide under another MCC, and gives the provider a duty to look for mismatches.<\/p><\/div><\/div><\/section><section id=\"liab\"><h2>Who is liable<\/h2><p style=\"max-width:70ch\">Liability is spread along the whole chain.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>The acquirer<\/h3><p>Under the Visa Acceptance Risk Standards, the acquirer must ensure transactions are legal. If illegal activity is found, it must take legal action, cooperate with Visa and law enforcement, hold available settlement funds where possible and report the results to Visa (AACQ.C8.3).<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>Mastercard and the BRAM programme<\/h3><p>The BRAM (Mastercard\u2019s Business Risk Assessment and Mitigation program) programme investigates sellers referred to Mastercard as possibly engaged in illegal or brand-damaging transactions, including through law enforcement referrals. If a violation is found, Mastercard notifies the acquirer. In cases started by law enforcement the acquirer must report its findings within two business days, and in other cases within five. The response must include a remediation plan, the seller\u2019s application and agreement, monthly transaction volumes and the MATCH (Mastercard\u2019s list of terminated merchants) Pro check results. For breaching the rules on illegal transactions the acquirer may be assessed USD 200,000, or USD 2,500 per day if it proves the violation lasted less than 80 days. The amount may be reduced if the acquirer stopped the activity within two business days of notification.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>PayFac and ISO<\/h3><p>If an acquirer onboards high-risk sellers through third parties, it must register them with Visa, conduct due diligence, review their merchant diligence and monitoring, and provide formal oversight at least annually. A PayFac with such sellers is registered as a High-Risk Internet PayFac. We covered the allocation of responsibility <a href=\"\/en\/payfac-sub-merchant-liability\/\">in the article on PayFacs, aggregators and ISOs<\/a>.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><h3>The processor and intermediaries<\/h3><p>In the US case, a payment processor also bore criminal liability. Chad Elie, a processor for PokerStars, Full Tilt Poker and Absolute Poker, pleaded guilty to conspiracy to commit bank fraud and to operate illegal gambling businesses.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>The seller<\/h3><p>The agreement must require compliance with the law and Visa rules, prohibit transactions the seller knows or should have known are illegal, and recognise Visa\u2019s right to limit or terminate the agreement. We covered which clauses to include in <a href=\"\/en\/merchant-agreement-transaction-laundering\/\">our article on merchant agreements and protection from transaction laundering<\/a>.<\/p><\/div><\/div><\/section><section id=\"practice\"><h2>Practice<\/h2><p style=\"max-width:70ch\">The most detailed public description of such a scheme was given by the US Department of Justice in its case against online poker companies. It is a US case, and part of the information in it consists of the prosecution\u2019s allegations, not facts established by a court.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>The indictment, 15 April 2011<\/h3><p>Eleven people linked to PokerStars, Full Tilt Poker and Absolute Poker were charged. The charges included conspiracy to violate the UIGEA, operating illegal gambling businesses, conspiracy to commit bank and wire fraud, and money laundering conspiracy. According to the prosecution, the companies processed billions of dollars in payments, of which about one-third or more went to them as rake. About 76 bank accounts in 14 countries were restrained, and the civil complaint sought at least $3 billion.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>The settlement, 31 July 2012<\/h3><p>PokerStars forfeited $547 million to the US and paid a further $225 million for the Full Tilt assets, while Full Tilt forfeited virtually all of its assets to the government. The settlements contained no admission of wrongdoing.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><h3>The processor\u2019s sentence, 3 October 2012<\/h3><p>Chad Elie pleaded guilty to conspiracy to commit bank fraud and to operate illegal gambling businesses. The court sentenced him to five months in prison, two years of supervised release and forfeiture of $500,000. He had earlier given up claims to about $25 million in seized accounts.<\/p><\/div><\/div><div class=\"lbm-co info\"><span class=\"lbm-ico\"><svg><use href=\"#i-info\"\/><\/svg><\/span><div><b>What this means<\/b><p>For banks and processors, the main risk is not the operator\u2019s licence but that they helped disguise the payments. In the case described, the claims concerned precisely the deception of banks.<\/p><\/div><\/div><\/section><section id=\"signs\"><h2>Warning signs<\/h2><p style=\"max-width:70ch\">Signs pointed to by Visa rules and by the case materials.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>In the data<\/h3><p>An unusually high number of transactions, similar amounts, transactions that do not match the declared business, and a mismatch between merchant name and MCC.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-globe\"\/><\/svg><\/span><h3>On the website<\/h3><p>The site does not sell what is declared, there is no cart or checkout, and there are suspicious URLs and backlinks.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>In the intermediary\u2019s behaviour<\/h3><p>An intermediary offers benefits for fast onboarding, as in the US case where processors offered banks investments, or insists on separate payment pages.<\/p><\/div><\/div><\/section><section id=\"contract\"><h2>Contracts and controls<\/h2><p style=\"max-width:70ch\">Visa\u2019s requirements for acquirers are easy to carry over into contracts and procedures.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><h3>The seller agreement<\/h3><p>A ban on transactions the seller knows or should have known are illegal, a duty to comply with the law and card scheme rules, the right of the acquirer and the card scheme to limit or terminate the agreement, and a ban on accepting payments for third parties.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>Checks and monitoring<\/h3><p>A check against a terminated merchant file such as VMSS before signing, KYB (know your business, checks on corporate customers) and sanctions screening, tracking of mismatches and an annual confirmation of controls for high-risk sellers.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-list\"\/><\/svg><\/span><h3>A website register<\/h3><p>A register of websites and URLs, updated when they change, with checks of backlinks.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Our practice, not a rule requirement<\/b><p>A right to audit and to make test payments on the site, withholding payouts on suspicion, a duty on the seller to report new sites and payment pages, and reimbursement of card scheme fines.<\/p><\/div><\/div><\/section><div class=\"lbm-svc\"><div><b>Need help with this topic?<\/b><p>We will review your situation and propose a solution for your project.<\/p><\/div><a class=\"lbm-svc-btn popmake-4929\" href=\"#\" role=\"button\">Contact us<\/a><\/div><section id=\"case\"><h2>Case analysis<\/h2><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Hypothetical example, not a real case<\/b><p>A payment provider onboards an online hobby goods shop. After three months turnover is three times what was declared, amounts repeat and the site has no cart. A review shows that the payment page leads to another site offering real-money games. A sensible order of action is to pause payouts, preserve the evidence, check related sites and payments, inform the acquirer and, where the applicable law requires, law enforcement, terminate the agreement and rethink underwriting of similar clients.<\/p><\/div><\/div><\/section><section id=\"choose\"><h2>What to do<\/h2><p style=\"max-width:70ch\">Start by answering whether you have gambling clients, and then check for hidden ones.<\/p><ol class=\"lbm-steps\"><li><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><div><h3>Find out whether you work with gambling clients<\/h3><p>List your sellers and MCCs and find those whose declared business does not match the actual one.<\/p><span class=\"lbm-tag\">Start here<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><div><h3>Check registrations<\/h3><p>Gambling sellers need acquirer and seller registrations with Visa and specialty merchant registration with Mastercard.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><div><h3>Set up monitoring for mismatches<\/h3><p>Transaction data, websites, merchant names and MCCs, and backlinks.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><div><h3>Record the terms in contracts<\/h3><p>A ban on hidden payments, audit rights, withholding of payouts and liability for card scheme fines.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><div><h3>Check intermediaries<\/h3><p>PayFacs and ISOs that bring in clients must pass due diligence and annual oversight.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><h3>Prepare a plan for suspicion<\/h3><p>Pausing payouts, preserving evidence, notifying the acquirer and deciding on termination.<\/p><\/div><\/li><\/ol><\/section><figure class=\"lbm-pull\"><q>For a payment provider, the costliest thing is not accepting a gambling client but accepting one under someone else\u2019s name.<\/q><cite>The LegalBit team<\/cite><\/figure><section id=\"faq\"><h2>Frequently asked questions<\/h2><div class=\"lbm-faq\"><details><summary>Can payments of gambling operators be accepted?<\/summary><p>Yes, but only as a registered high-risk category. Visa requires registration of the acquirer and the seller, and Mastercard requires registration of specialty merchants.<\/p><\/details><details><summary>What is transaction laundering in gambling?<\/summary><p>According to Visa, it is when an unknown business processes payments through an approved merchant\u2019s credentials for undisclosed goods or services. In gambling, gambling payments are dressed up as payments for ordinary goods.<\/p><\/details><details><summary>Is the acquirer liable for hidden gambling at a client?<\/summary><p>Under the Visa Acceptance Risk Standards, the acquirer must ensure that transactions are legal and, if illegal activity is found, take action, including cooperating with Visa and law enforcement.<\/p><\/details><details><summary>Is the right MCC enough?<\/summary><p>No. The actual business must be checked and monitored. Visa points to mismatches between merchant name and MCC and to checks of websites and backlinks.<\/p><\/details><details><summary>Does this concern only the US?<\/summary><p>The case and the UIGEA are American, but Visa and Mastercard rules apply in many countries. In addition, in other jurisdictions, for example Brazil, banks may not process betting transactions.<\/p><\/details><\/div><p class=\"lbm-more\"><b>See also: <\/b><a href=\"\/en\/transaction-laundering-and-miscoding\/\">Transaction Laundering and Miscoding: The Hidden Threats to Your Fintech Business<\/a>; <a href=\"\/en\/payfac-sub-merchant-liability\/\">Payment Facilitators, Aggregators and ISOs: Who Is Responsible for Sub-Merchants<\/a>; <a href=\"\/en\/brazil-betting-ban\/\">Brazil\u2019s Betting Ban<\/a>; <a href=\"\/en\/igaming-responsible-gambling-aml\/\">Responsible gambling and AML for operators<\/a>. Services: <a href=\"\/en\/igaming-legal-services\/\">iGaming<\/a>, <a href=\"\/en\/fintech-payments-legal\/\">fintech and payments<\/a>.<\/p><div class=\"lbm-src\"><b>Sources<\/b><ul><li><a href=\"https:\/\/usa.visa.com\/dam\/VCOM\/download\/merchants\/visa-acceptance-risk-standards.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Visa: Visa Acceptance Risk Standards (October 2024)<\/a><\/li><li><a href=\"https:\/\/visa.cl\/content\/dam\/VCOM\/regional\/lac\/SPA\/chile\/Documents\/visa-integrity-risk-program-chile.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Visa: Visa Integrity Risk Program<\/a><\/li><li><a href=\"https:\/\/www.mastercard.com\/content\/dam\/mccom\/shared\/business\/support\/rules-pdfs\/mastercard-rules.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Mastercard: Mastercard Rules (2 June 2026 edition)<\/a><\/li><li><a href=\"https:\/\/www.mastercard.com\/content\/dam\/mccom\/shared\/business\/support\/rules-pdfs\/SPME-Manual.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Mastercard: Security Rules and Procedures, Merchant Edition (4 August 2026 edition)<\/a><\/li><li><a href=\"https:\/\/www.justice.gov\/archive\/usao\/nys\/pressreleases\/April11\/scheinbergetalindictmentpr.pdf\" rel=\"nofollow noopener\" target=\"_blank\">U.S. Attorney\u2019s Office, SDNY: Press release on the indictment of 11 defendants in the online poker case (15 April 2011)<\/a><\/li><li><a href=\"https:\/\/www.justice.gov\/archive\/usao\/nys\/pressreleases\/July12\/pokersettlement.html\" rel=\"nofollow noopener\" target=\"_blank\">U.S. Attorney\u2019s Office, SDNY: Press release on the PokerStars and Full Tilt settlements (31 July 2012)<\/a><\/li><li><a href=\"https:\/\/www.justice.gov\/archive\/usao\/nys\/pressreleases\/October12\/chadelie.html\" rel=\"nofollow noopener\" target=\"_blank\">U.S. Attorney\u2019s Office, SDNY: Press release on the sentencing of payment processor Chad Elie (3 October 2012)<\/a><\/li><li><a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=%28title%3A31+section%3A5363+edition%3Aprelim%29+OR+%28granuleid%3AUSC-prelim-title31-section5363%29&amp;f=treesort&amp;edition=prelim&amp;num=0&amp;jumpTo=true\" rel=\"nofollow noopener\" target=\"_blank\">U.S. Code: 31 U.S.C. \u00a7 5363, Prohibition on acceptance of any financial instrument for unlawful Internet gambling<\/a><\/li><\/ul><\/div><\/section><\/div>\n\n\n\n<div class=\"lb-ac\"><h2>This is what we do<\/h2><p>How we help gambling and payment companies:<\/p><ul><li><a href=\"https:\/\/legalbit.top\/en\/igaming-legal-services\/\">iGaming<\/a><\/li><li><a href=\"https:\/\/legalbit.top\/en\/fintech-payments-legal\/\">Fintech and payments<\/a><\/li><\/ul><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"BlogPosting\",\"headline\":\"Illegal Gambling Through Other Businesses\u2019 Card Payments: How the Scheme Works and Who Is Liable\",\"description\":\"How gambling payments are disguised as another business, what Visa and Mastercard require, how the US DOJ case ended, and how an acquirer or payment provider can protect itself.\",\"url\":\"https:\/\/legalbit.top\/en\/gambling-payment-laundering\/\",\"mainEntityOfPage\":\"https:\/\/legalbit.top\/en\/gambling-payment-laundering\/\",\"image\":\"https:\/\/legalbit.top\/wp-content\/uploads\/2026\/10\/gambling_cards-scaled.webp\",\"datePublished\":\"2026-10-22T14:10:00+03:00\",\"dateModified\":\"2026-10-22T14:10:00+03:00\",\"inLanguage\":\"en\",\"author\":{\"@type\":\"Organization\",\"name\":\"LegalBit\",\"url\":\"https:\/\/legalbit.top\/\"},\"publisher\":{\"@type\":\"Organization\",\"name\":\"LegalBit\",\"url\":\"https:\/\/legalbit.top\/\"}}<\/script>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Can payments of gambling operators be accepted?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, but only as a registered high-risk category. 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In gambling, gambling payments are dressed up as payments for ordinary goods.\"}},{\"@type\":\"Question\",\"name\":\"Is the acquirer liable for hidden gambling at a client?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Under the Visa Acceptance Risk Standards, the acquirer must ensure that transactions are legal and, if illegal activity is found, take action, including cooperating with Visa and law enforcement.\"}},{\"@type\":\"Question\",\"name\":\"Is the right MCC enough?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. The actual business must be checked and monitored. Visa points to mismatches between merchant name and MCC and to checks of websites and backlinks.\"}},{\"@type\":\"Question\",\"name\":\"Does this concern only the US?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The case and the UIGEA are American, but Visa and Mastercard rules apply in many countries. In addition, in other jurisdictions, for example Brazil, banks may not process betting transactions.\"}}]}<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Illegal gambling businesses rarely accept payments under their own name. More often players\u2019 card payments pass through someone else\u2019s ordinary-looking business, and that is exactly what card schemes and banks hold acquirers and payment companies to account for. We go through, according to primary sources, how such a scheme works, what Visa and Mastercard require, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7845,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72,69],"tags":[105,118,115,78,117,119],"post_folder":[],"class_list":["post-7843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","category-igaming","tag-aml","tag-card-schemes","tag-compliance","tag-gambling","tag-payments","tag-transaction-laundering"],"_links":{"self":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/comments?post=7843"}],"version-history":[{"count":13,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7843\/revisions"}],"predecessor-version":[{"id":8122,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7843\/revisions\/8122"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media\/7845"}],"wp:attachment":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media?parent=7843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/categories?post=7843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/tags?post=7843"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/post_folder?post=7843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}