Turkish President Recep Tayyip Erdoğan is facing mounting criticism over the government’s inaction against illegal online gambling operations.
The controversy was sparked by the arrest of Ahmet Faruk Karslı, founder and CEO of the Istanbul-based neobank app Papara, which has been widely covered in Turkish media over the past week.
Karslı was detained by the Police Intelligence on corruption charges. According to investigators, Papara allegedly facilitated transactions through 26,000 accounts linked to illegal online betting. The total volume of these transactions is estimated at approximately 12.9 billion Turkish lira (around $358 million).
Papara is said to have played a key role in a large-scale money laundering scheme, helping to funnel gambling revenues through 270 banks, eventually transferring the funds to cryptocurrency wallets.
The Central Bank of Turkey has since imposed strict restrictions on Papara’s operations, including daily transaction limits. While the app remains technically accessible, users are currently unable to make any transfers. All of Papara’s accounts have been frozen by the Turkish Savings Deposit Insurance Fund (TMSF) pending the outcome of the investigation.
Opposition parties have accused President Erdogan and the ruling Justice and Prosperity Party (AKP) of failing to act against illegal gambling networks, which are being exploited by organized crime groups that take advantage of loopholes in Turkey’s financial and regulatory systems.
Strong condemnation came from Ali Babacan, leader of the Democracy and Progress Party (DEVA), who accused the AKP not only of negligence but also of complicity in the rapid expansion of Turkey’s underground gambling economy.
Babacan, a former senior AKP official and deputy prime minister under Erdoğan, left the party in 2019, citing the erosion of democratic institutions and a decline in economic integrity.
Speaking at a party assembly, he shared stories of families harmed by illegal gambling operations and accused Erdoğan of personally endorsing gambling platforms under the guise of “regulation.”
“There are platforms operating under the signatures of senior officials,” he said. “This government claims to be fighting illegal gambling, while at the same time enabling its expansion.”
He warned that the Papara case is just the tip of the iceberg, describing how illegal operators are openly targeting Turkish users via social media, banking partnerships, and mobile apps. “This shows just how vulnerable Turkey is: criminals aren’t even hiding — they’re advertising.”
The scandal stands in stark contrast to the promises made by President Erdoğan and top AKP officials at the start of 2025, pledging a tough crackdown on illegal gambling. In January, Interior Minister Ali Yerlikaya warned Turkish authorities to prepare for large-scale nationwide operations to curb illicit betting.
However, critics argue that these pledges were never truly implemented and amounted to little more than lip service. Babacan remarked: “The state declared war on illegal gambling in words, but in practice it issued licenses, turned a blind eye to money laundering through banks, and failed to protect its citizens.”
This regulatory failure is particularly striking in light of the religious-conservative values of the AK Party, which has traditionally opposed gambling as an immoral activity. The opposition highlights the glaring contrast between the party’s name — Justice and Prosperity Party — and its actual political conduct.
The Papara scandal is unfolding amid growing political instability. Erdoğan’s government faces mounting public discontent over its harsh response to mass protests in Istanbul, sparked by the controversial arrest of opposition mayor Ekrem İmamoğlu earlier this year.
Once seen as a driver of reform, the AK Party is now facing intense criticism for democratic backsliding, cronyism, and selective justice. It has been rocked by a series of scandals and is now seeing its lowest popularity levels in its 22 years in power — 14 of which have been under President Erdoğan’s leadership.
Public anger is fueling calls for early elections, while opposition parties — including DEVA, the Felicity Party, and the Future Party — are uniting around a shared goal: the restoration of the rule of law. Together, they have formed the “New Path” bloc, aiming to present a unified front should snap national elections be called.
“People are beginning to see the cracks,” Babacan noted. “This is no longer just about gambling. It’s about the state turning away from its citizens while criminal networks thrive.”
Amid growing doubts about Erdoğan’s leadership and speculation over his efforts to bypass the constitution in order to extend his presidency beyond 2028, the gambling crisis touches on much deeper issues.
The Papara scandal has become a symbol of how far the AK government has strayed from its founding ideals and how blurred the line between legality and impunity has become. The incident highlights failures in law enforcement, oversight, and institutional trust — and the opposition is seizing the moment to challenge Erdoğan.
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