US Banks Block Legal Online Gambling Payments
12th January 2014
While residents of Nevada, Delaware and New Jersey can now enjoy legalized online gambling, certain credit card providers are still blocking payments.
Just when you thought it was OK to punch the air in delight that the legal system in at least three states had finally come to its senses and allowed regulated and legalized online gambling, there are still some party poopers out to spoil your enjoyment! It seems that despite it now being perfectly legal and acceptable to partake in gaming over the Internet in the three states mentioned above, some credit card providers are still playing it safe and refusing payments using their credit and debit cards.
Payment Denied!
Three major credit card issuers, American Express, J.P. Morgan Chase and Wells Fargo continue to refuse their credit and debit cards to be used for depositing money into online gambling site accounts. That includes online casinos, sports betting sites and poker sites which can all legally be played at by residents of Nevada, New Jersey and Delaware.
This is not s new move by these card issuers, but simply an on-going compliance with the Federal laws on the matter that were initiated back in 2006 with the UIGEA (Unlawful Internet Gambling Enforcement Act) and implemented by US banks and financial institutions in 2010. Until US Federal law changes, there does not appear to be any sign of this restriction being raised, even for transactions originating in states where Internet gambling is now legal.
How to Fund Online Gaming Accounts
The question of how to fund their accounts is an issue for gamers in those three states as well as for regulated and licensed operators who are trying to attract theirs and new business. According to Station Casinos Inc. subsidiary Ultimate Gaming CEO Tom Prior, "What the industry has done is take a conservative approach or response to the legalization of online gambling. That can be frustrating, but we work with customers to find alternatives."
He added that customers of Ultimate Gaming in both Nevada and New Jersey can fund their accounts using online payment processor alternatives, or make in-person cash deposits at brick and mortar Station Casinos in southern Nevada or at Atlantic City's Taj Mahal casino.
Genuine Fears Over Illegal Gambling
Wells Fargo and several other card issuing financial institutions have very real concerns about processing illegal bets and have measures in place to prevent it happening. This includes bets that underage gamblers may try and place or those attempted by customers not physically present in Nevada (or the other two states where online gambling is legal) when a bet is placed.
This means that the potential for this type of fraudulent activity is a lot lower than it was a few years ago. This at least is a good thing.
Experts tend to agree that the situation will change eventually as more states allow Internet gambling and Federal laws are modified to keep pace with the changes. But how long that will be is anyone's guess as the wheels of the legal system tend to move very slowly.
You can read more on this story here: Las Vegas Review Journal
