In recent years, the activities of gambling and betting websites in the country have significantly increased. This increase comes at a time when, due to poor economic conditions, many individuals, especially the younger generation, view gambling as a potential source of income, leading to daily growth in the number of fans and users of these websites. Meanwhile, some of these websites have official payment gateways and provide users with the ability to make payments through the banking system. The question here is how these individuals can access banking gateways and utilize these services despite the restrictions that often exist for many domestic businesses.
The Popularity of Gambling
According to IDEA, Sociologically, gambling and betting tend to become more popular in societies that either have good prosperity or have very low levels of well-being. Unfortunately, Iran falls into the latter category. In circumstances where the level of well-being in society has decreased, and job opportunities are scarce, gambling and betting are considered a source of income. Meanwhile, extensive advertising of these websites by artists, influencers, and even Telegram channels and Instagram pages with a high number of followers contribute to the recognition and popularity of these types of websites.
In such conditions where gambling websites are promoted daily, and a significant portion of influential groups in society is involved in advertising, it has been observed that many of these websites also use the services of domestic banks. This is happening while many domestic businesses have to go through bureaucratic hurdles to obtain payment gateways and do not have easy access to such services. So how do these websites have access to these services?
The Footprint of Rent and Relationships
There are many companies operating in various fields that use various payment gateways for their operations. Since some companies have multiple payment gateways that are underutilized or unused, they decide to rent their gateways to these websites. In this scenario, all deposited amounts are transferred to a legitimate legal entity or individual, and after money laundering and complete cleansing of the funds, this capital is taken out of the country. According to the latest available data from credible sources, the annual turnover of the gambling industry in the country ranges from 9 to 12 trillion tomans, which means that annually, approximately 180 to 240 million dollars of capital is taken out of the country through the gambling network. However, it should be noted that these figures are all estimates and, due to the lack of complete identification and full control over the gambling network, are not very accurate. The real numbers are likely much higher than the estimates.
In addition to renting payment gateways, the footprint of rent and relationships is also evident in these investigations. Some of these websites are owned by individuals who have good connections at the highest levels of the country and can easily access many of these banking services. Moreover, some others, by paying substantial bribes, typically within PSPs, activate payment gateway services for themselves. However, in recent years, due to the increased sensitivity of the Central Bank and the expansion of the tax system in the country, some of these groups have turned to using other methods.
Methods of Bypassing Surveillance Systems
One of the most popular methods for bypassing the banking system is the use of card-to-card and multi-bank card services. Renting bank cards is one of the most common methods that these individuals employ. Gambling websites create an extensive network in the country to rent bank cards from individuals, primarily elderly people living in deprived areas of the country. The unawareness of these individuals makes it easy for them to collect a large number of bank cards. In a recent police investigation last year, more than 190 rented bank cards were seized from a gambling network, indicating the extensive activities of just one gang in the country.
Another method frequently used by these websites is the use of Webmoney and Perfectmoney. Due to the absence of any supervisory authority over them, this method is considered one of the old but relatively popular methods among these websites. Recently, with the growth in awareness and use of cryptocurrencies in the country, this method has also become popular among gambling websites. These websites use certain cryptocurrencies, mainly including Tether and other stablecoins, as well as some privacy tokens like Monero and Dash, to bypass the monitoring and payment system in the country. However, despite the high awareness and usage of cryptocurrencies in many major provinces of the country, these individuals are forced to use bank payment gateways for the purpose of targeting weaker and less aware groups. Nevertheless, some of these websites are not solely focused on generating income through gambling and betting.
Other Revenue Streams of Betting Websites
Phishing is one of the most popular and simplest methods of theft in the country’s banking system. Some betting websites, under the pretext of identity verification, collect users’ basic information such as name, surname, phone number, and a picture of their national ID card. After obtaining this information, they create a phishing gateway to access users’ banking information and empty the accounts of all users in one go.
Therefore, it seems that the Central Bank should increase its supervision over payment gateways for the sake of the country’s financial security, and the Cyber Police should enhance their monitoring of these websites. However, above all, there should be a focus on raising awareness about these websites for all age groups to prevent such problems in the country.
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