Mastercard and Visa are probing claims that illegal gambling websites facilitated deposits through their networks.An investigation into the sites found that Mastercard and Visa were failing to prevent their networks from being used for those transactions, The Guardian reported last week.The investigation — by the group Investigate Europe — found that Mastercard was offered as a payment method on nine casino and live sports betting websites targeting customers in the United Kingdom, while Visa was listed on two, per the report. The findings were part of a broader examination of a network of gambling sites operating in Europe despite being outlawed.A spokesperson for Mastercard told PYMNTS the company has “zero tolerance” for illegal activity on its network and is investigating the sites in question. Mastercard has no direct relationship with the merchants, and the payments were made via an acquirer.“Acquirers are responsible for performing due diligence on their customers and ensuring the merchant is properly registered on our network, and acts lawfully, including obtaining and maintaining the required regulatory licenses to operate in all jurisdictions they do business,” the spokesperson said. “Acquirers also must ensure their customers fully comply with Mastercard rules and to never use the network for transactions prohibited by applicable law.”Visa did not reply to PYMNTS’ request for comment. A Visa spokesperson told The Guardian the company would also be investigating the reports, adding that it has “no direct relationship with merchants” but works with partners to terminate merchants offering illegal services, and “constantly invests” in “best-in-class technology” to ensure compliance.Meanwhile, the gambling sector is getting a payments-centric makeover as sportsbooks and online gaming platforms compete for player loyalty.After sports betting was legalized throughout the United States, payments remained a hurdle, as issuing banks tended to block gambling-related transactions, Zak Cutler, president of global gaming at Paysafe, told PYMNTS last month. Even after gaming was legalized, approval rates remained low.Over time, however, major financial institutions began to recognize the legitimacy of online sports betting, bringing transaction approval rates from single digits to more than 90% at major banks at current rates.“Fast forward five years, and we’ve gone from very few ways to pay — with a ton of friction — to a well-optimized space with a variety of payment methods,” Cutler said

Industry experts have highlighted this acquisition as a strategic move, positioning American Express to better compete against rivals such as Visa and Mastercard, both of which have invested heavily in digital payment innovation.