Payment Processors and Banks are Refusing Bets
Just when online gambling has gotten going in certain states in the USA, card issuers such a Wells Fargo, Bank of America, American Express, Ebay/Paypal are blocking transactions that relate to online gaming. Currently Nevada and Delaware now allow online gambling, and New Jersey is poised to become the next state to allow online gambling, this will be implemented on the 26th November.
Research conducted by H2 Gambling Capital has found that the rejections threaten the newly emerging business potential of $7.4 billion industry in annual revenue over a four year period. Visa and MasterCard issuers have expressed concerns over potential liability with regard to underage wagering as well as other violations, this is according to the American Bankers Association. American Express and Paypal have said that they do not process any gambling transactions of any kind.
Jim Barbee from the State Gaming Control Board stated that Credit Cards Visa and MasterCard do allow transactions in states that are legalized on their networks but that the final decisions was still bank dependent. Visa is lacking behind MasterCard in updating their systems to reflect legal changes, Debit Card transactions have been approved in most of the contacting banks.
Delaware is in the process of compiling data about acceptance rates of credit cards and they will be contacting the card issuers. The Lottery officials are also discussing the situation with Delaware Bankers Association. It is also noted that about 1,100 players have signed up in the state over the past two weeks. Two weeks.
Two licensed sites Ultimate Poker and WSOP.com, who offer online poker games for people in the state of Nevada, have had on averaged 100-120 players over a 7 day period. PokerStars a casino outside of the USA averages 23,500 players.