Recently, Turkish authorities arrested various suspects. These include the chairperson of BankPozitif and PayFix, a digital payments provider, Erkan Kork. This is as part of a major operation targeting illegal online betting.
Kork faces accusations of laundering funds from illegal gambling activities and facilitating unauthorized transactions. With 21 formally taken into custody, including Kork, the operation led to the detention of 52 individuals in Istanbul.
Authorities have also seized businesses affiliated with Kork. These include BankPozitif, PayFix, and Flash TV, a local media outlet. BankPozitif does not accept deposits. PayFix obtained it from Bank Hapoalim of Israel in 2023.
The Banking Regulation and Supervision Agency (BDDK) previously stated that it transferred the management of BankPozitif to Türkiye’s Savings Deposit Insurance Fund (TMSF).
The state also seized PayFix and Flash TV. Authorities confiscated assets valued at TL 6.9 billion or $190 million as part of the operation.
The crackdown is part of broader efforts of Türkiye to strengthen oversight of digital payments in the middle of rising concerns about the prevalence of illegal gambling.
The Financial Crimes Investigation Board (MASAK) discovered that PayFix accounts processed nearly 50 million betting-related transactions, amounting to TL 4 billion, and directed them to cryptocurrency exchanges.
Prosecutors allege that Kork incorporated these gambling operations into systems of PayFix.
The Central Bank of the Republic of Türkiye or CBRT announced it had suspended all operational licenses by PayFix, with two other payment companies, Ininal and Aypara. These have also been under investigation by judicial authorities.
Having banned both casinos and online gambling in past decades, Türkiye enforces strict regulations on gambling. Nonetheless, illegal gambling remains persistent, specifically in professional football. This is in spite the existence of state-run lotteries, as well as authorized betting services.
