Global Gambling Cash Flow

gamblingTo date, the industry of online gambling is not only actively developed all over the world, but also competes with other financial sectors in terms of cash flow turnover. According to the information provided by MECN, over the past year 75% of the active industry players said they planned to grow their existing business. The interviewed online gambling operators claimed they’ve increased their income by 18% over the same period. Such an increase is repeated on a regular basis since 2010, not yielding results in industries such as tourism and online e-commerce. Nederlandsegokken online casino gambling center says the numbers may rise in the nearest decade in Europe due to liberalization of local gambling regulations.

Plastic card usage: the tricky cases

Plastic card represent the most massive online payment method. However, there is a concern of rising conflicts between gambling consumers and government agencies. Frankly speaking, many management practices are a relic of the days when online gambling was synonymous with ‘grey offshore casino’.

Today, however, the legalization of online gambling is on the rise. In the United States, the country with the most tough gambling regulation, allowed online gambling business registration in three states – Nevada, Delaware and New Jersey. In 2014, the list was replenished with California, Pennsylvania, New York and Illinois. In Congress, at the same time, circulating the rumors on legalization of online gambling at the national level.

Casino operators are concerned that banks’ reluctance to engage in processing of payment transactions in gambling may prevent potential growth of the industry. The business reps of New Jersey in the first five weeks of the legalization of online gambling admitted the revenue influx at a level of only $8.4 million, far below the preliminary estimates. In addition, about a third of all credit and debit cards transactions for gambling payments activity were rejected by banks, and from 15 to 20% of the users were not able to use their cards for online gambling payments.

Restricting the access

According to a representative of one of the leading banks in the United States, Bank of America, credit and debit cards can be used for personal purchases, but not for gaming activity on the Internet. In turn, the representatives of Wells Fargo, another banking company in the United States, said that the establishment of a total ban on their customers to use credit cards for online gambling has been initiated. Payment systems Visa, MasterCard and American Express, according to the company, track category codes and block transactions that do not comply with federal regulations. For example, we know that MasterCard assigns a code 7995 to operators of online games as well as lottery tickets, casino chips and racings betting. For these categories banks routinely block the transactions.

Representatives of the industry of online gambling are pinning their hopes on the fact that banks and payment processing companies simplify their attitude towards online gambling. However, many online casinos do not wait and are looking for alternative methods of accepting payments on their websites. In New Jersey, one of the most popular payment methods to make a deposit in an online casino is a UK-based Skrill payment method.