Published on November 17, 2013 by Tom Jones
The Unlawful Internet Gambling Enforcement Act was installed place in 2006, with probably the most prevalent a part of the law placing an emphasis on financial institutions blocking transactions to and from online gaming sites. Seven years after the ill-advised law was created, it's now causing problems among states with regulated Internet gambling.
Nevada, Delaware, and New Jersey have all spent the past several years creating laws regulating online casinos. Over the last few months, Nevada has launched their first online sites, with New Jersey set to take action on November 26th. Operators of those sites, however, are finding that financial institutions haven't yet adapted to the legalized type of gaming.
Operators are complaining that PayPal, American Express Co., and Bank of America Corp. has been declining transactions to regulated online sites. With only some states having regulated the industry thus far within the US, financial institutions are erring at the side of caution.
"There are still things that may get it wrong inspite of controls in place," said Steve Kenneally, Vice chairman of the yankee Bankers Association.
Visa and MasterCard have taken a special approach. The 2 bank card companies have updated their coding to permit for regulated online gambling transactions to move through. While the bank card companies have adapted, it's still as much as the issuing bank whether the transactions are processed.
"Until the entire kinks are worked out of this new regulated system, customers are going to continue to have their transactions declined," said analyst Brad Simmons. "THE METHOD to regulated online gambling was grueling, and until federal laws change, there'll stay obstacles for regulated online casinos."
While some bank card companies have began to adapt, American Express is hoping true to their company principle of not allowing their cards for use for any type of gambling.
Read More... [Source: Online Casino News]
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