New Jersey Works on Proper Licensing for Online Gambling Payment Processors
While players in New Jersey have the luxury of legal online gambling and poker in their state since November, some financial institutions have made the payment process challenging.Initially, some credit card companies and banks refused to process gambling transactions and in fact, banned these processes altogether.
New Jersey is now working hard to open the doors for financial institutions to process these transactions with ease and without the stigma attached to online gambling.
In their quest, New Jersey is currently trying to create licensing requirements for institutions handling gambler deposits and withdrawals. In this way, the hope is that banks will feel more comfortable about allowing players to use their credit cards while gambling.
Due to the limitations imposed by the banks in New Jersey, this state has failed to see a substantial growth in their online gambling industry.
In response, on Tuesday during the East Coast Gaming Congress, Senator James Whelan announced that a bill, which was introduced already in February, would require payment processors to obtain a casino industry service license.
With stricter guidelines in place, financial institutions are more likely to feel more assurance to working in the gambling industry. The bill also aims to encourage banks and credit card companies to allow their services to also be used in i-Gaming in New Jersey.
To date, only 73% of MasterCard charges as well as only 44% of Visa transactions have been approved since online gambling was launched in New Jersey. Until now, AMEX and Discover do not allow their clients to use their credit cards for gambling.