A recent ruling from the Financial Ombudsman Service (FOS) has highlighted significant concerns regarding the role of financial institutions, particularly fintech companies like Revolut, in handling gambling addiction and the use of cryptocurrencies in gambling activities. The case involved a customer known as Mr. H, who used Revolut to convert funds into cryptocurrency and subsequently gambled with those funds. Revolut’s failure to effectively address his addiction-related concerns and requests for account restrictions highlights gaps in the company’s protective measures.
The FOS Ruling: A Critical Examination of Revolut’s Practices
Mr. H, struggling with gambling addiction, reached out to Revolut in 2025, asking for measures to block or restrict his ability to make cryptocurrency transactions. Despite Revolut’s offering of a gambling block feature that can restrict card payments for gambling-related transactions, this tool did not apply to crypto transactions. The customer’s attempts to permanently close his account were also unsuccessful. Revolut’s response, directing him to support teams that could not address his needs, was criticized by the FOS. Caroline Davies, the ombudsman in charge of the ruling, remarked that Revolut had the ability to close Mr. H’s account permanently but failed to take this step, leaving him vulnerable.
The Role of Crypto and Financial Firms in Gambling Prevention
The link between gambling and financial institutions has become a pressing issue, as digital currencies are increasingly used for gambling transactions, often in unregulated environments. Revolut, along with other banks and fintechs, offers a gambling block feature, which can prevent gambling transactions. However, this feature is not applicable to cryptocurrency purchases, which has raised concerns. The ability for customers to disable these blocks at will further weakens their effectiveness in preventing harm.
Revolut’s failure to take immediate action is part of a broader challenge facing financial firms in protecting vulnerable customers. While companies like Revolut and Monzo have introduced tools to restrict gambling-related payments, these measures still fall short in addressing the full spectrum of gambling addiction, particularly when cryptocurrency is involved.
Cryptocurrency and Gambling: A Growing Concern
The use of cryptocurrency in gambling has drawn attention from regulators, particularly in the UK. The UK Gambling Commission (UKGC) has been clear that no licensed gambling operator in the UK should be accepting crypto as a payment method, emphasizing that sites offering such options are typically unlicensed and often part of the black market. However, the rise of cryptocurrency as a preferred method of payment for a younger demographic poses new challenges for regulators. As crypto’s popularity grows, its use in unregulated gambling markets has increased, raising concerns about the risks it presents to consumers who may be unaware of the lack of protections in place.
The UK government is already working on creating a regulatory framework for cryptocurrency, with plans for new legislation expected to be introduced by 2027. This will provide greater legal clarity for the crypto sector, including defining the role of crypto in gambling. However, the immediate question remains: how can financial institutions and fintech firms adapt to address the risks associated with crypto gambling in the meantime?
What Needs to Change in Financial and Gambling Regulations?
The case against Revolut underscores the need for stronger regulatory measures in both the financial and gambling sectors. As the popularity of cryptocurrency continues to rise, regulators must ensure that financial firms take appropriate steps to prevent gambling-related harm. For example, financial institutions should be required to implement more comprehensive controls for cryptocurrency transactions, particularly in contexts where gambling addiction is a concern.
In response to the FOS ruling, Revolut has committed to improving its services for customers facing gambling problems, stating that protecting its customers is a top priority. The company has emphasized the importance of its gambling block feature and offered customers the option to hide cryptocurrency tools, but these measures alone may not be enough. More robust systems are needed to prevent individuals like Mr. H from accessing gambling opportunities through cryptocurrencies.
Source:
Crypto and Gambling: A Blind Spot Exposed, sbcnews.co.uk, January 28, 2026
