Central Europe

German Regulations Ban Visa and Mastercard from Online Casino Transactions

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Online casinos targeting German consumers will no longer be able to use Visa or Mastercard services, as a fresh wave of punitive legislation targeted at the iGaming industry and payment providers transferring money to and from online casinos has been unleashed.

Visa has instructed banks in Germany not to accept deposits and withdrawals from online casinos using their cards.

A financial services giant spokesperson said the company recently reached out to its retail banking partners to ensure that “only legal, properly licenced transactions are processed” using its credit cards.

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It has also recently emerged that German online casino players do not use their Mastercard credit cards to deposit money and withdraw their winnings from gaming websites. Casinos replied generally that Visa and Mastercard had advised them either to exclude the two companies from their lists of available payment options in Germany or to lose access to Visa and Mastercards in all the markets they work.

Last month, the state of Lower Saxony in Germany ordered an unidentified payment service provider to refrain from handling illicit online gambling transactions, that is, casino websites.

Last summer, the state issued a similar notice again to an unidentified payment agency, which was generally assumed by local media to be PayPal as the company revealed shortly after that notice it was shutting down its services to German online casino players.

Lower Saxony ‘s Minister of Interior and Recreation, Boris Pistorius, said last month that payment service providers are “legally obliged to refrain from making payments in connexion with illegal gambling” and urged them to “critically review and, if necessary immediately stop working with companies that practise illegal gambling.”

Minister Pistorius sent the country’s banking sector a letter earlier in 2020 urging financial institutions to stop the processing of illicit gambling money.

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