Banks Limiting Options for Online Casinos in US

Online casinos are dependent upon US banks, the industry is quickly finding out after a rash of rejections threatens the newly established online gaming community in two states - Delaware and Nevada.

Players' Visa and Mastercards were turned down by some banks in Delaware as they tried to make bets online. In Nevada, as players wanted to place their first online bets for poker April 30, they had a difficult time opening accounts. Credit-card issuers like Wells Fargo, American Express, Bank of America, Ebay and PayPal refused to honor the registrations or bets.

Will The Garden State Face Banking Opposition?

New Jersey is set to launch online gaming Nov. 26 and become the third state in line for internet wagering. 

The online gaming arena in the US has a potential revenue of $7.4 billion in four years if the industry can convince card issuers to join the gaming venture. But banks are worried they may take a fall in revenue and have concerns about liability for customers who are underage and violations.

The American Bankers Association has also unfavorably weighed in on the conflict, which originally addressed underage wagering as a factor.

Bank of America is evaluating whether gaming transactions will eventually be allowed. American Express flat out bars gaming transactions as does Wells Fargo and Discover. Both Wells Fargo and Discover cited compliance issues with the federal government. PayPal said online gaming is addressed in its policy.

Following the passage of the Unlawful Internet Gambling Enforcement Act in the US, banks ousted gaming transactions from their card-payment systems. Meanwhile, WSOP and Ultimate Poker continue to draw players in Nevada, averaging 23,500 customers.