Turkey steps up fight against illegal online gambling

President Recep Tayyip Erdogan instructed the Cabinet of Ministers to tighten control over unlicensed gambling and money laundering through fintech services. The occasion was the growth of gambling addiction and the high-profile Papara case - the largest investigation in the history of Turkish fintech.

Key Facts

• Government prepares plan to crack down on illegal online gambling before 2027 election
• Coordination is led by Vice President Cevdet Yılmaz with the participation of MASAK and law enforcement agencies
• Blocking offshore sites and tightening control over payments are planned
• According to Yeşilay Addiction Prevention Organization, 28% of all addiction referrals in the country are related to gambling

Key case: Papara

• Papara - Turkey's largest payment system with millions of users
• Founder Ahmet Farooq Karsli and top executives are accused of laundering proceeds from illegal bets
• Transactions of 102 operators with a turnover of up to $1.19 billion passed through 26,000 accounts
• Confiscated assets worth $167 million, including yachts, 74 autos and real estate
• Papara is placed under the management of the Deposit Insurance Fund

Context

President Erdogan called online gambling «a plague that destroys families and youth». According to the authorities, the growth of gambling addiction in the country is directly related to the spread of cryptocasinos. At the same time, the opposition accuses the ruling party of belated measures and media pressure.

Practical implications

• Tightening regulation of fintech and crypto-payments
• Potential sanctions against foreign companies
• Blocking unlicensed platforms and payment channels

Conclusions

• Turkey toughens crackdown on offshore casinos and betting
• Fintech and crypto sector to come under increased scrutiny
• The Papara case could set a precedent for the region