The popular money-transfer service Cash App is now under investigation after two whistleblowers allege that it performed inadequate due diligence on users.
The claim states that the platform potentially allows money laundering, terrorism financing, and other illegal activities. The whistleblowers claim that Cash App “had no effective procedure to establish the identity of its customers.”
The claim also details questionable transactions with entities under sanction by the Treasury Department’s Office of Foreign Assets Control. It also states that operations known to sell personal information for illegal purposes and prepaid gambling sites are using the service.
While gambling sites are not technically illegal under federal law, there have been some efforts to curb transactions at the federal level. In 2006, the federal government enacted the Unlawful Internet Gambling Enforcement Act (UIGEA). Rather than banning online gambling outright, the law prohibits gambling businesses from knowingly accepting payments, like credit cards, electronic transfers, or checks.
The whistleblowers submitted their complaint to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury responsible for administering the Bank Secrecy Act and analyzing financial transactions to address money laundering, terrorist financing, and other illegal activities.
Prepaid Gambling Sites That Accept Cash App
From our experience, the only prepaid casinos that accept Cash App are sites that allow players to buy vouchers from other players. We have not seen a legit online casino that will accept Cash App payments directly.
Player vouchers can be sold with numerous third-party money-transfer services, including Venmo, Apple Pay, and more. The seller decides whether to accept a payment from one of these services.
Once a voucher has been purchased, account holders can enter their voucher code to see the funds reflected on their player account. However, not all gambling sites allow players to sell their account balance through vouchers.
Does Cash App Authorize Gambling Payments?
Cash App does not authorize gambling-related payments under its current policies. As of early 2025, the platform updated its terms to explicitly prohibit transactions tied to gambling activities—including online casinos, sports betting, and even informal wagers, regardless of whether those activities are legal in your state.
Despite the new policies, buying player vouchers with the Cash App is still widely used as players look for fast ways to fund their accounts. It is also important to note that traditional cards, such as Visa, American Express, and MasterCard, are also widely accepted despite the UIGEA Act of 2006.
Earlier this year, Cash App’s parent company, Block, was ordered to pay up to $175 million for failing to protect its users from fraud.