Turkey Arrests Bank Chairman, Seizes Bank in Crackdown on Illegal Online Betting
Turkish authorities have arrested dozens of suspects, including Erkan Kork, chairman of BankPozitif and digital payments provider PayFix, as part of a major crackdown on illegal online gambling, Bloomberg reports.
Police also seized several businesses linked to Kork, including BankPozitif, PayFix, and local broadcaster Flash TV.
According to the state-run Anadolu Agency, Kork is accused of laundering proceeds from illegal gambling and facilitating unlawful transactions. He was among 52 people detained during police raids across Istanbul, with 21 formally arrested.
The arrests come amid growing concerns in Turkey about the proliferation of illegal gambling facilitated by digital payment platforms. Turkish authorities are seeking to tighten oversight of these systems.
BankPozitif, a boutique bank that does not accept deposits, was acquired by PayFix from Israel’s Bank Hapoalim in 2023. Its seizure signifies the seriousness with which Turkish authorities are treating the alleged offenses.
The Financial Crimes Investigation Board (Masak) reportedly found that nearly 50 million transactions tied to illegal betting, totaling 4 billion liras ($109 million), were funneled through PayFix accounts to cryptocurrency exchanges. Prosecutors accuse Kork of enabling these betting operations by integrating them into PayFix’s system.
Gambling in Turkey is highly regulated, with casinos and online gambling banned for decades. While a state lottery and certain betting services are permitted, illegal gambling remains prevalent, particularly related to professional football.
Former Masak official Ramazan Basak estimates that the volume of illegal betting in Turkey could reach up to $50 billion, dwarfing the size of the country’s legal sports betting market. Treasury and Finance Minister Mehmet Simsek stated in December that authorities have blocked access to nearly 400,000 websites since 2023 in an effort to combat illegal online gambling.
