Investigative journalism has uncovered evidence that over €600 million flowed through UK-regulated payment institutions into accounts connected to Soft2bet, a technology group operating a network of unlicensed online casinos across Europe. The findings raise uncomfortable questions about compliance oversight at FCA-authorised payment firms handling high-risk gambling traffic.

The Money Trail

According to leaked financial records examined by Investigate Europe, two FCA-regulated payment institutions, My EU Pay and Unlimit, processed substantial volumes for Cypriot intermediaries Tranello and Tilaros between 2020 and 2024. These shell companies served as the financial conduit for deposits originating from dozens of blacklisted gambling websites, funnelling approximately €543 million through My EU Pay accounts linked to Soft2bet and its commercial partners.

Unlimit handled a smaller but still significant €65 million during a similar period, processing transfers attributed to Soft2bet and affiliated entities. Here’s where it gets explicit: when Soft2bet opened accounts, internal documentation identified itself as the beneficial owner and listed known blacklisted casinos, including Malina Casino and Buran Casino, as anticipated sources of customer deposits.

A Structural Problem in Payment Infrastructure

The investigation highlights a growing vulnerability in the payments sector. Electronic money institutions operate under materially different regulatory frameworks than traditional banks, allowing them to hold and transfer customer funds without full banking licensing. As major financial institutions have withdrawn from the gambling sector entirely, higher-risk operators have migrated toward payment firms with comparatively underdeveloped financial crime detection systems.

Chris Kosnow Rasmussen, a financial crime expert cited in the investigation, noted something telling: the transaction patterns documented in the leaked files are consistent with layering techniques designed to obscure the source and beneficial ownership of funds. The use of intermediate Cypriot entities, vague transaction descriptions, and rapid redistribution through multiple accounts all serve the same strategic purpose. Distance and obfuscation.

Beyond the UK

The payment chain extended well beyond British borders. Denmark-based Inpay received approximately €102 million from the same Cypriot intermediaries during the same four-year window, with transfers commonly labelled as generic account top-ups. New York Stock Exchange-listed Paysafe moved €12.7 million into the system whilst receiving €4 million in return, and its own annual filings acknowledge that a material portion of revenues derives from unregulated gambling merchants, explicitly warning shareholders of legal exposure in those markets.

Journalists testing the system found further red flags. A single €15 deposit to Onlyspins, a Soft2bet-linked casino, processed through Paysafe without age or identity verification, despite regulatory requirements in virtually every European jurisdiction. Website analytics suggested the platform attracted over one million visits from EU countries in a three-month period alone.

The Corporate Response

Soft2bet rejected the investigation’s findings, arguing that media coverage misrepresented the company’s corporate structure and business operations. According to the company, it operates within applicable legal frameworks and maintains robust compliance procedures. My EU Pay declined on-the-record comment; Unlimit did not respond to requests. The FCA, naturally, refused to discuss individual firms.

The Cypriot intermediaries were ultimately declared bankrupt in 2024 after Austrian courts determined they had operated unlicensed gambling websites. Lord Foster of Bath, chair of Peers for Gambling Reform, called for urgent examination of how FCA-authorised payment institutions became conduits for blacklisted operators, emphasising that any involvement by regulated firms warranted formal investigation.