Online Poker Players Face Difficulties Making Deposites Via MasterCard and Visa
February 8, 2010
There's a buzz about the web that directly effects online poker players looking to use their credit cards to make deposits to poker sites from the United States. According to news reports, gossip, and forums (both pos, and poker) MasterCard has made some major moves in effort to put a damper on deposits to online poker rooms, online casinos, bingo halls, and all online gambling sites from the United States.
The new changes are a direct result of the Unlawful Internet Gambling Enforcement Act commonly referred to as the UIGEA. The UIGEA was attached to the end of a Port Security bill that was known to be very important to President Bush. With no line item veto option available, it was all or nothing, the bill was inked without a second thought to citizens that might want to keep their right to gamble online, the same way they do in casinos, and in even on lotteries, via video poker machines, and in bingo halls all over the country.
In fact, many US citizens really still don't know what hit them as we enter this new era, the prohibition on online gambling. Credit card companies were given until this July to comply with the guidelines set forth by the UIGEA, these guidelines do not allow the financial companies to facilitate deposits to online gambling entities, such as online poker rooms.
So far however, Players located within the United States are still able to get money into their online poker accounts using echecks, bankwires, and some credit cards. There have already been reports of both Visa's and MasterCards that used to work, no longer working, including both debit and credit cards.
This isn't the first time MasterCard has made efforts to block deposits from US residents to online wagering sites. Thus far, industry programmers have found ways to get around their efforts.
In fact Jeremy Enke explained recently on a poker affiliate forum:
This involves all Visa and MasterCard's held by U.S. customers. If what I have been told is correct, they are all being shut off to online gaming. I realize there are ways to get around coding, etc. Apparently the processors have been worried about this for scenario for a while and yesterday it finally hit. Right now only people inside of the payment processing world are aware of this.
If this is true, it is the end of CC payment processing in the U.S. It apparently is the start of enforcing the new laws pre-legislation. I was also told that banks are holding funds everywhere and starting to charge exorbitant fines to the processors to get their money out.
"Allegedly," Mr. Enke continued, "MasterCard has been monitoring thousands of transactions and has been able to identify customers in which they believe are being rerouted to un-coded processors.
Then they got all the various processors who do what is called "cascading" in the processing industry. In other words, the processors always try to send transactions through normally first, and if it doesn't go through, they bounce them through un-coded.
Bottom line from my understanding though is that the CC companies finally figured out how gambling transactions were getting through and have started identifying all these processors, holding money, and stopping the transactions.
There is more technical stuff that I was told, which quite frankly I don't understand all of it. But my understanding is that the manual tracing and cascading is what brought it all to light to the CC companies.
I asked the question on Facebook the other day. Why is online gambling illegal in the United States per the UIGEA. It was a bit of a trick question, as many will tell you that online poker is indeed not illegal, in fact, someone did.
"There is no control over keeping children from playing and spending money they don't have". Said Connie, 54 of HotSprings Arizona., "I believe those that are so against the online also say that it contributes to those that have problems with gambling."
That might have been a respectable reason at least. To protect the children we should not gamble online. Except, as Zion, age 23 from Birmingham, Michigan pointed out, that issue has been addressed.
"The law clearly states that it is NOT illegal to play online poker. The law is about the money transfer issue ONLY. I know, I have a BIG online poker club 3000 strong. We still play!!" Zion went on to say; "Its about controlling the $$$ from leaving the country. All online games are registered outside the USA, hence why they want to control the money. The reality Connie, is that it is not children playing, they have no way of paying or depositing funds without a source to do it with, that is why they closed down a lot of money transfer companies and kept our money and never refunded it!!!"
Our own PDX Nikki even responded, ""Online Poker is not bad. Who is to say it is any worse than alcohol or cigarettes(which are both legal). While it is true that you can still play Poker online, even for real money if you have the right resources, where you can play and how you can deposit has become slim pickings. I get what Zion said about the money going out of the US, but how much money goes out of the US on a daily bases to other countries for goods, services etc. The Online Poker Ban IMO is just another way for the country to have a hand in our pocket and a say in our lives. PDX Nikki is 25 from Portland, Oregon"
Roger Shriver of Compatible Poker brought some very relevant light to the subject as well.
"MasterCard has been jaded by the online gambling community since 1999 when they were sued by a lady who claimed MasterCard allowed her to participate in an illegal activity, costing her $70K in online gambling debt. This lead us into a scenario where the casinos technically couldn't collect and MasterCard or anyone for that matter that made a percentage or provided funding for internet gambling was "aiding and abetting.". Thus for lack of better words, MasterCard has had a hard on for gambling sites for awhile now, with many attempts to block deposits.
In general the US Government nor does the majority of the US Population want online gambling to be banned. The soon to be law, UIGEA, was the agenda of a few men, primarily Bill Frist a US Senator, not the people or entire US Government. Unfortunately Senators can be very powerful, and laws must be enforced. With a law that was put in place the way it is, it is very hard to over turn such a controversial subject especially when most people flat out don't care especially with the way the economy is. Ironically, the bad economy is what may aid in "Legal" online gambling because of tax dollars which is why so many states are seeking increased gaming options.
The entire logistics of banned gambling is hard enough to figure out, but if you throw in an outcome that resulted in new laws that allowed licensed internet gambling and non-licensed online gambling the logistics of that feasibly happening is next to impossible with the way the financial sector works.
Roger Shriver
Compatible Poker
Jacksonville Beach, Florida
Both PokerStars and Absolute Poker have been contacted for comment, as well as new updated info about the best ways to make deposits at their poker sites. Absolute Poker has promised us a response though we've not heard back as of yet. PokerStars did not reply to our email.
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UIGEA made it very difficult for online casino players to deposit money at casinos because UIGEA exempted the involment of US banks and other financial institutions to engage in any sort of transactions with online gambling websites. So, players started using other payment methods like the ones given at http://www.casinosdiary.com/category/payment-meth... for deposits and withdrawals at online casinos.