Digital Wallets, Dirty Bets: Turkey Strikes at the Payment Rails Behind Illegal Gambling
- Kevin Jones
- Mar 23
- 7 min read
What began as a routine regulatory sweep has escalated into a full-scale financial purge. In the space of weeks, Turkey’s central bank has suspended licenses, seized assets, and arrested fintech executives—all in an aggressive bid to dismantle the payment rails fuelling the country’s illegal gambling ecosystem. At the centre of this operation: digital wallets turned unwitting accomplices, and a government determined to starve the underground market by cutting off its cash supply.
Fintech Firms in the Crosshairs of Enforcement
Turkish authorities have broadened their offensive against illegal gambling by targeting the financial technology sector at its core. In mid-March, a major operation led to the detention of around 50 suspects and the seizure of 23 companies – including a bank and a TV station – all tied to illicit betting networks. Among those arrested was Erkan Kork, chairman of digital wallet provider PayFix (and of BankPozitif), who faces accusations of laundering funds from illegal gambling and facilitating unlawful transactions. Investigators allege that Kork and his associates had effectively integrated illegal betting platforms into PayFix’s payment systems, enabling unlicensed betting sites (many based abroad) to operate in Turkey under the radar.
The fallout was swift for the fintech companies at the center of the probe. The Central Bank of the Republic of Turkey (TCMB) confirmed it suspended all operational licenses of PayFix and two other electronic payment providers, Aypara and Ininal, amid the expanding illegal gambling investigation. By late March, the central bank had moved to revoke the Electronic Money Institution (EMI) licenses of PayFix and Aypara entirely, citing the arrests and evidence of massive illicit transactions. (EMI licenses allow fintech firms to offer payment services similar to banks, minus lending functions)
The message was clear: fintech platforms found complicit in processing bets for underground casinos would be shut down and seized. In fact, authorities have already taken over PayFix’s assets and placed BankPozitif under state trusteeship, as regulators step in to prevent further misuse of these financial entities.
Key recent actions in Turkey’s anti-gambling crackdown include:
Licenses Suspended: TCMB halted the operations of PayFix, Aypara, and Ininal – popular digital wallet services – as part of the illegal betting probe.
Executives Arrested: PayFix’s chairman and others were detained on charges of money laundering and running an unauthorised betting network.
Assets Seized: Officials seized ₺6.9 billion (≈$188–190 million) in assets, including a boutique bank (BankPozitif), a TV channel (Flash TV), real estate and vehicles, linked to the gambling ring.
Transactions Traced: Financial investigators identified 855 PayFix accounts tied to illegal betting, through which about ₺4.2 billion (≈$115 million) was funnelled to cryptocurrency exchanges in nearly 50 million transactions over just two months.
Licenses Revoked: Following the probe, the central bank fully revoked the e-money licenses of PayFix and Aypara, permanently barring them from the payments market.
Central Bank and Regulators Tighten the Screws
Turkey’s central bank and its broader regulatory apparatus have embraced an aggressive, coordinated approach to stamp out illegal gambling. The Financial Crimes Investigation Board (MASAK) – Turkey’s financial intelligence unit – played a pivotal role by uncovering the staggering scope of betting-related flows moving through fintech channels. MASAK’s reports, shared with the central bank and prosecutors, detailed how tens of millions of micro-transactions from Turkish bettors were aggregated via e-wallets like PayFix and then converted to crypto-assets off-platform. Armed with this data, law enforcement executed nationwide raids and prosecutors secured court orders to detain suspects and freeze assets. The Banking Regulation and Supervision Agency (BDDK) also stepped in – notably handing control of Kork’s BankPozitif to the Savings Deposit Insurance Fund to safeguard the banking system.
Crucially, the Central Bank of Turkey (CBRT) leveraged its regulatory authority over payment service providers to deliver immediate consequences. In a public statement, the CBRT affirmed it would “continue its surveillance and auditing activities with a proactive approach” to ensure payment and electronic money institutions operate securely and legally. The bank made good on that promise by swiftly suspending and terminating licenses once evidence emerged, effectively cutting off these platforms from the financial system. “Investigation reports are sent to relevant public bodies so they can take further action,” the central bank noted, underscoring close inter-agency cooperation. This concerted effort between the central bank, MASAK, prosecutors, and other agencies marks an unprecedented regulatory clampdown on fintech-mediated gambling. It demonstrates a willingness to wield every tool – from compliance audits to asset seizures – in what officials call a “great battle” against illegal betting.
Regulators are also pushing for stronger laws to reinforce their crackdown. In January, Treasury and Finance Minister Mehmet Şimşek issued a directive expanding authorities’ powers to combat illegal gaming sites. Şimşek warned that Turkey faces a “great battle against illegal betting and gambling sites”, framing the issue as a threat to both social welfare and public revenues. Proposed legal reforms include tougher penalties – a revision of the penal code could introduce stiffer fines and prison terms of 3–6 years for illegal gambling offenses (up from current sentences). Meanwhile, the National Lottery Administration (Milli Piyango or MPİ) has launched nationwide awareness campaigns in all 81 provinces to educate citizens on the risks and consequences of unlicensed gambling. These policy moves signal that Turkey’s offensive is not a one-off blitz, but rather a sustained campaign combining enforcement, legislation, and public outreach.
Fintech’s Evolving Role in Anti-Gambling Strategy
The focus on fintech companies reveals how payment technology has become a double-edged sword in Turkey’s gambling landscape. On one hand, digital wallets and online payment services have offered convenience and innovation in finance; on the other, criminal enterprises exploited these platforms to bypass strict gambling bans. With traditional casinos and betting shops outlawed in Turkey, illegal operators turned to the internet – and to fintech – to reach Turkish customers. Unlicensed betting sites, often hosted overseas, encouraged players to fund their accounts through local e-money providers, knowing that transactions might slip through as routine e-commerce or person-to-person payments. In the recent bust, PayFix alone handled an estimated ₺4 billion in illicit bets routed to crypto exchanges before authorities intervened. The inclusion of cryptocurrency adds another layer, as digital coins help obscure money trails across borders, challenging regulators to trace and freeze funds effectively.
The government’s strategy now treats fintech firms as both a vulnerability and a vital partner in cracking down on illegal gambling. By making high-profile examples of PayFix, Aypara, and Ininal, Turkish regulators are sending a clear warning to the entire fintech sector: tighten compliance or face severe repercussions. Payment companies are expected to beef up their monitoring for suspicious spikes in small transfers, unusual account clustering, or repeated crypto exchange payouts – all red flags of betting-related laundering. Regulators have indicated they will be more proactive in auditing these firms’ transaction data and swiftly sanctioning any breaches. In effect, fintech platforms are being deputised into the fight—those who cooperate in filtering or blocking gambling payments will solidify their legitimacy, while those that facilitate black-market betting (knowingly or through negligence) risk annihilation. This marks an evolution in the anti-gambling strategy: rather than a cat-and-mouse game of whack-a-mole with rogue websites alone, Turkey is attacking the problem at its financial roots, leveraging the reach of fintech to starve illegal bookmakers of revenue.
Notably, Turkey’s crackdown aligns with a broader international trend of scrutinising payment systems in gambling. Around the world, regulatory eyes are turning to banks, card networks, and fintech gateways that might be misused by illicit gaming operators. Even global payment giants like Mastercard and Visa have had to pledge vigilance after investigations found illegal gambling websites processing deposits via their networks. (In one recent probe, researchers discovered several outlawed casino sites in Europe openly accepting Mastercard and Visa until the card firms intervened.) Encrypted messaging platforms have also come under fire – Turkish officials moved to restrict apps like Telegram when they learned such channels were hosting crypto-casino games and betting rings beyond the reach of traditional web censors. These international linkages underscore that illegal online gambling is a transnational challenge, thriving on modern fintech and internet tools. Turkey’s response – fusing financial oversight with cyber patrol – could provide a case study for other jurisdictions grappling with the nexus of fintech and unlawful gambling.
Impacts and Implications for the Gaming Sector
Turkey’s hard-line measures are already reverberating through the gambling and gaming sector. For illegal betting operators, the immediate impact is a significant disruption of their payment pipelines and customer reach inside Turkey. With 233,000+ gambling websites blocked over the last two years and counting, plus the decapitation of key payment conduits, the underground market faces higher hurdles to collect money from players. Some offshore bookmakers may seek alternate channels (smaller payment processors, cryptocurrencies, or proxy agents), but the heightened vigilance makes it costlier and riskier to cater to Turkish bettors. The recent arrests and asset forfeitures also likely have a deterrent effect: organisers now know that Turkish authorities will not hesitate to raid offices, jail executives, and liquidate companies involved in illicit gambling. This level of enforcement raises the stakes for anyone considering servicing Turkey’s black market for bets.
On the flip side, the crackdown fortifies the position of Turkey’s state-sanctioned gaming operations. The country maintains a state monopoly on most gambling (through the national lottery, authorised sports betting via IDDAA, and a few legal online platforms), which means clamping down on illegal competitors can help channel users back toward legal offerings. Finance Minister Şimşek has pointed out that unregulated gambling undermines tax revenues and public funds that come from these legal channels. By cutting off illegal outlets, Turkey not only protects consumers from unlicensed operators but also safeguards the revenue stream of state-controlled betting – an important consideration for a government looking to shore up its economy. Legitimate gaming firms and their international partners will be watching how this plays out; some may even find new opportunities if Turkey’s authorities consider authorising more monitored, legal forms of online play to meet demand that was previously going to rogue sites (though as of now, Turkey’s ruling party shows no intent to relax the longstanding ban on private gambling).
From a regulatory perspective, Turkey’s recent actions highlight an increasingly holistic approach to gambling oversight – one that combines technology, finance, and law enforcement. The close collaboration between the central bank, financial crime investigators, telecom authorities, and the justice system is tightening the net around illegal gambling activities. Other countries in the region and beyond may take cues from this multi-pronged model. For the gaming industry at large, the Turkish example is a reminder that compliance isn’t just about operators and casinos, but extends to payment processors, fintech startups, and even media platforms that can inadvertently facilitate illicit play. The coming months will test how effectively Turkey can sustain this crackdown and whether the illegal market adapts or recedes under pressure. For now, the consensus among Turkish officials is resolute: by severing the flow of money and access, they intend to tilt the odds decisively against illegal gambling networks – and in favour of a regulated, transparent gaming sector.