FinTelegram’s investigative efforts under the “Follow the Money” initiative have revealed significant findings about the involvement of payment processors in the online casino and gambling industry. Among the notable entities, Klarna‘s subsidiary Sofort has frequently surfaced as a payment processor for various operators, including those running illegal or unauthorized schemes.
Klarna and Sofort’s Involvement in Online Gambling
Through our comprehensive reviews, Klarna’s subsidiary Sofort has been identified as a payment facilitator for numerous online casinos. These findings are particularly concerning in cases where operators lacked the necessary regulatory approvals to offer gambling services. Sofort‘s payment solutions enabled players to deposit funds via bank transfer, effectively onboarding them despite the operators’ non-compliance with regulatory standards.
Read our opinion on payment processors and Curacao-licensed casino operators here.
Most recently, our investigations uncovered Sofort’s association with the illegal online casinos Atlantis Slots and PlayRegal. These casinos were operated by Curacao-based entities such as Pennytech Holding B.V. and Logic Online Corp B.V., which do not possess valid licenses in Curacao. They deploy unauthorized payment agents to process payments from their players.
In the case of the Sofort payment option, the London-based gambling company Intelli Global LTD d/b/a TTVGAMES (TTVGAMES.com) is used as a payment agent for the Sofort option. Evidently, Intelli Global is registered as a merchant with Sofort.
TTVGAMES also offers games on its website, with players wagering chips and vouchers that have to be purchased from TTVGAMES beforehand. Sofort is also one of the payment options.
The Continent Pay Connection
All companies in this environment are linked to the Polish company Continent Pay, which acts as the cashier. Officially, Continent Pay is disguised as an online marketing agency in Warsaw. According to our information, Continent Pay is controlled by the Israeli-Georgian cybercrime activist Gery Shalon.
Read our Continent Pay reports here.
Klarna’s Systematic Withdrawal
Our latest review on July 16, 2024, indicates a significant shift in Klarna’s operational strategy. The Sofort payment option has been removed from Atlantis Slots, though it remains available at PlayRegal, as evidenced by our findings (see attached screenshot). This partial withdrawal suggests an ongoing process rather than a completed exit.
However, Klarna appears to be systematically retracting its Sofort solution from the risky and predominantly illegal online casino sector. This aligns with the Klarna Group‘s official policy, which explicitly states its intent not to serve this segment. The current actions reflect a move towards compliance with this policy, underscoring the importance of aligning operational practices with corporate policies.
Implications and Recommendations
Klarna’s retreat from the online gambling sector is a critical step towards mitigating legal and regulatory risks associated with facilitating payments for unauthorized gambling operators. The presence of Sofort in the payment ecosystems of illegal casinos like Atlantis Slots and PlayRegal highlighted significant compliance lapses. Addressing these issues is essential for maintaining regulatory integrity and protecting consumers.
For payment processors like Klarna and Sofort, this situation is a crucial reminder of the need for rigorous compliance frameworks. Ensuring that their services are not used to facilitate illegal activities is paramount. Payment processors must:
- Implement Robust AML and KYC Procedures: Strengthen due diligence processes to ensure clients operate within legal and regulatory boundaries.
- Regular Audits and Monitoring: Conduct periodic reviews of client activities to detect and prevent involvement in illegal operations.
- Clear Policy Enforcement: Align business practices with corporate policies to avoid reputational and regulatory damage.
Call for Information
As FinTelegram continues to monitor the activities of payment processors in the online casino sector, we urge individuals with relevant information to come forward. Our whistleblower system, whistle42, is available for securely sharing insights about payment processors like Klarna or Sofort operating in this domain. Your contributions are vital in promoting transparency and accountability within the financial and gambling industries.
