Relevant authorities are still working on plans to combat online betting and gambling services.
In an interview with EcoIran web TV, Financial Tribune's sister media outlet, Mojtaba Tavangar, head of the Majlis Digital Economy Commission, said 8,000 POS terminals have been blocked by the Central Bank of Iran.
The devices were connected to Iran's domestic payment network and used in neighboring countries mostly by owners of online casinos. Gambling is banned in Iran since 1979.
Press reports say there has been an increase in online gambling and betting in recent years. Experts warn that cyber and financial crime is spreading fast and is cause for alarm, particularly in the cyber and payment areas.
The blocking came after the CBI enforced a decision in February 2020 to ban such systems in foreign countries spurred by growing concern that access to the payment devices was helping the huge outflow of money and disrupting the domestic financial market.
The move was seen as part of broader measures by the CBI to stabilize the volatile currency market, curb capital flight, fight money laundering and stop suspicious transactions using the payment network.
Alternatives
As the authorities increase control over illegal transactions, owners of online casinos find alternative methods for running their illegal but lucrative business.
"Our studies show that gambling website owners have mostly stopped using POS terminals after the CBI's measures," Tavangar said.
"Instead, they are using interbank transactions, via the Shetab Network, which is also being monitored by the central bank."
The CBI announced earlier that it had blocked more than 20,000 bank cards used by illegal websites. It has reportedly sent details of 450,000 bank cards used in online betting and gambling websites to the judiciary,
The CBI is also using a smart platform to detect and block unauthorized payment gateways created and used by online betting and gambling websites. The smart detection of unauthorized payment gateways has begun and “allows us to quickly detect illegal payment gateways and block them automatically.”
Payment gateways used by online casinos are illegal and usually are rented using bank accounts and bank cards for the prohibited activities.
Owners of small businesses have been cautioned about the malpractice as they are more likely to be deceived by online casinos with the intention of huge gains.
Shaparak, the body in charge of supervising the domestic payment network, recently said it has blocked 3,540 payment gateways used by online betting and gambling sites since the beginning of the current fiscal year in March 2021.
The company’s “risk committee” is tasked with finding and plugging loopholes that can endanger the network, including techniques used by illegal betting and gambling.
