Online gambling launch

With Delaware’s online gambling launch on October 31^st there were likely any number of legitimate concerns on the minds of stakeholders linked to the introduction of such enterprise. Most probably had to do with technical stability or adhering to legal requirements. From an outsider’s perspective it seems reasonable that these would spawn greater debate and concern than the actual processing of credit card transactions.

Unfortunately, that thinking hasn’t helped to circumvent the current situation.

For those planning to participate in the brave new world of online gambling with their credit card, it’s important to understand that policies resulting in declined transactions have more to do with certain banks than the credit card companies themselves. Among those banks refusing to process web gambling transactions are American Express Co. and Wells Fargo & Co. America’s financial institutions are not alone in imposing restrictions as payment processor PayPal is also refusing to get in the gambling game.

According to the banks, the apprehension is derived from the supposed potential of underage participants, as well as those living outside of state lines, whose activity would fall outside of the legislative framework and therefore be considered illegal. In the case of New Jersey, which is slated to launch online gambling on November 26^th, the red flag raised by Delaware’s processing conundrum serves as a warning of what might be headed its way.

The news is not entirely surprising as Nevada, the first state to allow online poker earlier this year, has encountered issues with player account creation. But with the forthcoming New Jersey launch, we will see the country’s 11^th most populous state offer a diverse selection of poker, slots and casino games.

The potential for growth and state revenues in New Jersey is immense and depending on how players attempt to engage online products such restrictions could prove problematic. The good news is that there appears to be room for flexibility on the part of Bank of America and PayPal, the bad news is that any changes in policy are likely to take more than a week.

This current situation exemplifies something many have known for quite some time: the continued passage of state legislation allowing on gambling requires the continued proactive education of all parties involved from players to financial institutions.