When online gambling and poker options were first allowed in the state of New Jersey, players had issue with depositing and withdrawing funds from certain financial institutions. Banks and credit card companies in particular did not want to become involved in the new marketplace and decided to ban the option. The state of New Jersey is now trying to develop legislation that would give banks the peace of mind to work with online gambling payment processing.
The state is looking to create licensing requirements for companies that take care of deposits and payments for players involved in online gambling. The goal is to allow banks to feel more comfortable allowing gamblers to use credit cards for payment processing.
The state of New Jersey has not seen the amount of growth in the industry as they would like as the majority of credit card users have been denied usage for the purpose of gambling online. Senator James Whelan, announced on Tuesday during the East Coast Gaming Congress, that a bill introduced in February would see casino industry service licenses a requirement for payment processors.
Whelan stated that the hope is the bill will require financial institutions to be licensed with stricter guidelines so that they will have more assurance to work with the industry. Currently, the payment processors must only receive an ancillary license to operate and this license is easier to obtain.
According to The Associated Press, the goal is to get the banks and other financial companies to allow their credit cards to be used in the state of New Jersey for i-Gaming. The New Jersey Division of Gaming Enforcement Director, David Rebuck, stated that if the bill allows for better usage of credit cards it will be great and if it gives comfort to the banks and financial institutions, it will work for the state.
According to the Division, only 44% of Visa transactions have been approved since the November launch of online gambling in the state and 73% of MasterCard charges have been approved. Both Discover and American Express do not approve credit card use in this manner.
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