Credit Card Companies Trouble Regulated Gambling Transactions in Delaware

Published: December 8, 2013

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The legality of online casino and gambling does not come without struggle here in the United States. Just as when the it’s allowed by law here in the country, payment processors and banks are not complying with the entertainment business.

The transactions that happen through the use of credit card issues such as Bank of America Corp. Wells Fargo & Co., American Express Co., Paypal are not going through because these issuers aren’t allowing the transactions. States such as Delaware, Nevada and New Jersey have become the three main states that allow the online casino and gaming industry to thrive and be legal however faces many setbacks because these companies are not allowing gambling transactions.

Online casino gambling was introduced in Delaware on October 31st, 2013 and since then it has faced reports that players using Visa and MasterCard had their transactions rejected, according to the state lottery director, Vernon Kirk. On top of this, players in Nevada are also having problems with opening accounts.

According to Visa and MasterCard companies, transactions that are related to gambling, online casino and betting are allowed on their networks only where it is legal. However, there are also concerns that these companies faced such as liability for underage gambling and other violations which they will ultimately be responsible for. However, since online casino and gambling is allowed in certain states, the decision-making is left for the customer themselves. According to Rosetta Jones, a spokeswomen for MasterCard in an email liaison, . “Visa has updated its procedures to code newly legalized Internet gambling transactions so that financial institutions can identify and process them in states where they are allowed.”

However, Wells Fargo, Bank of America, American Express and Paypal says that they do not allow any transaction with relation to gambling and online casino at all. This is because all these companies bar any usage of their cards for gambling. According to all these companies, it is due to federal compliance issues. With the federal act in order, states in Delaware New Jersey and Nevada are trying to get the banks to change their payment set ups to accept transactions that gambling related.

These companies have programmed their payment systems to comply with the Congress bill that had been passed. The Unlawful Internet Gambling Enforcement Act was passed in 2006, which barred business from accepting payments for any gambling and online casino or betting systems. Some of these companies, however, are reviewing acceptance for gambling related transactions. According to the spokesperson for American Express, Marina Norville, the company is reviewing its permit for the future. With these thoughts in place, there could be a successful future for the online casino and gambling industry!

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