Turkish President Erdogan accused of enabling illegal gambling

Garance Limouzy

Illegal online gambling is shaking Turkish politics, pitting opposition leaders against President Erdogan and the ruling Justice and Development Party (AKP), and drawing attention to deepening economic anxieties and widespread digital betting among the countrys youth.

As reported by Turkish Minute, Ali Babacan, leader of the Democracy and Progress Party (DEVA) and former deputy prime minister, recently accused President Recep Tayyip Erdogan of enabling the spread of online gambling by issuing licenses that facilitate itdespite its nominally illegal status. Speaking during an appearance on Habertrk TV, Babacan alleged that the government was not only turning a blind eye to illicit betting but was actively profiting from it.

They could stop it immediately, but they dont, he said. On the contrary, they allow it, they issue licenses. The person issuing those licenses today is the countrys president.

State monopoly

While all private online gambling and 바카라s are banned in Turkey바카라s since 1998 and non-state online betting since 2006the government allows a handful of regulated platforms under strict state control. These include the state lottery Milli Piyango, and sports betting run by ?ans Giri?im, a subsidiary of Demir?ren Holding. The company, led by Erdogan ally Y?ld?r?m Demir?ren, explained the Turkish Minute, has managed ?ddaa, Turkeys exclusive fixed-odds sports betting operator, since 2019.

All of these platforms rely on payment systems, Babacan noted. You tell the Banking Regulation and Supervision Agency to shut it down, and they doits that simple.

Fintech giant caught in the crossfire

Yet, targeting the payment infrastructure behind illegal gambling is more complex than it seems. Recently, one of Turkeys most successful fintech entrepreneurs, Ahmed Karsl?, founder and chairman of the payment platform Papara, was arrested in connection with illegal gambling transactions. Interior Minister Ali Yerlikaya confirmed that 13 people were detained, including Karsl?, as part of a sweeping investigation into illegal betting and money laundering.

Founded in 2015, Papara has over 21 million users and is valued at more than $2 billion. Authorities say it played a key role in transferring illicit funds tied to illegal betting. According to Yerlikaya, TL12.9 billion (around $330 million) was funnelled through over 26,000 user accounts, moving through 274 intermediaries before landing in crypto wallets owned by illegal operators.

This crime network laundered vast sums and threatened not only individual victims but the social fabric as a whole, Yerlikaya said. We continue our fight against illegal betting and cyber fraud with determination for the safety of our citizens.

A crisis of trust

In March, police in Istanbul arrested 49 suspects in connection with unlicensed betting and alleged money laundering. The raid dismantled 23 companies, including a television channel, a digital payment provider, and a bank believed to be linked to gambling networks.

Yet critics like Babacan argue these efforts are merely cosmetic, as state-linked entities continue to dominate the only legal betting spacesraising concerns over a double standard.

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