Allegations of Illegal Betting and a 28-Year Prison Demand in the Papara Case

Prosecutors in Turkey have filed an indictment against five executives of Papara, including its founder Ahmet Faruk Karslı, alleging that the licensed e-wallet platform was used to move proceeds from illegal betting networks. The indictment seeks up to 28 years in prison for Karslı and an administrative fine of 50 million Turkish lira.

One of Turkey’s largest digital payment platforms, Papara, has become the focus of a landmark legal case testing the limits of the country’s fintech oversight. Prosecutors claim that the company’s e-money infrastructure was used to channel funds from illegal betting operations. The case, which marks one of the most significant criminal proceedings in Turkey’s financial technology sector, has reignited debate about whether the country’s digital payment systems can effectively prevent criminal exploitation.

Financial Traces Reveal ₺12.9 Billion in Transactions

According to the indictment, Turkey’s Financial Crimes Investigation Board (MASAK) analyzed more than 26,000 Papara accounts. Investigators found that 102 of them were connected to illegal betting platforms, tracing nearly ₺12.9 billion (about $400 million) in suspicious transactions over a two-year period.

Prosecutors say the funds were transferred through 274 different bank accounts before being converted into cryptocurrency and sent to 16 wallets abroad. The document argues that Papara’s infrastructure “enabled the circulation of illegal betting proceeds under the guise of legitimate e-money transactions.”

Alleged Money Transfer to Trabzonspor President

Another striking claim in the indictment involves an alleged ₺450–485 million transfer from Papara founder Ahmet Faruk Karslı to Trabzonspor football club president Ertuğrul Doğan. Prosecutors described the transaction as “of unclear nature,” noting that there was no documentation specifying the purpose or business context of the payment.

Ertuğrul Doğan has not publicly commented on the allegation. Legal experts emphasize that such transactions are not inherently criminal, but their legitimacy depends on whether the source and intent of the funds can be transparently explained.

The claim has shifted the focus of the Papara case beyond fintech, sparking discussion about the broader financial links between Turkey’s business and sports sectors.

Was Papara Really Used in Illegal Betting?

A review of various illegal betting websites shows that Papara frequently appeared among accepted payment options, allowing players to deposit and withdraw money through its platform. This indicates that Papara was, in practice, part of the financial ecosystem sustaining illegal betting in Turkey—even if unintentionally.

However, this does not necessarily imply complicity. Papara has stated that it identified and shut down accounts linked to betting-related activity and that it regularly reports suspicious transactions to regulators. The company emphasized that it cooperates with Turkish authorities, including MASAK, and has developed algorithms to detect irregular patterns.

Despite these efforts, experts agree that completely preventing such misuse is nearly impossible. Fast digital transfers, multiple identities, and crypto integration allow users to conceal their activity. As one financial-crime expert put it, “Papara wasn’t the perpetrator, but part of a system that can be exploited by anyone.”

Company Response: “The System Was Abused, Not the Company”

Papara’s official statements reflect a similar position. The company argues that its licensed financial system was abused by users, rather than Papara participating in any illegal activity. It maintains that it operates under BDDK supervision, complies with anti-money-laundering rules, and works closely with MASAK on suspicious transaction reports.

Executives insist that the case concerns individual misuse, not corporate misconduct. Papara portrays itself as a victim of systemic exploitation, saying that even with rigorous monitoring, it is impossible to stop every attempt at abuse within such a fast-moving digital ecosystem.

A Systemic Problem with No Easy Fix

The Papara case highlights a broader challenge: Turkey’s legal payment networks are often drawn into illegal betting flows despite their compliance obligations. Other e-money and payment firms have also appeared as payment methods on offshore betting sites, typically without consent.

Even when companies block offending accounts, new ones emerge within days. Experts say this cat-and-mouse cycle cannot be won through enforcement alone. Each restriction pushes illegal betting operations toward new tools—cryptocurrency, prepaid cards, or virtual POS systems.

Some economists argue that legalizing and regulating betting under transparent, taxable conditions could undercut the underground market. In such a system, similar to those in parts of Europe, users would no longer rely on gray-market payment intermediaries, and platforms like Papara could operate without the constant risk of criminal association.