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| U.S.A: Credit card companies refuse to process payments for Internet gambling |
2/17/2002 Lately, the online casinos have a huge problem: the growing number of credit card companies and banks that are refusing to process payments for Internet gambling. Customers frequently deny having placed bets or simply refuse to pay their credit card bills after running up large gambling debts. Some Internet casino owners say four of every five transaction requests are now denied. As a result, some gambling sites, particularly those serving the United States market, where 8 of every 10 wagers originate, have seen revenue fall at least 30 percent. Analysts who cover the industry say the liquidity crisis has already forced some operations to close. Visa and MasterCard do not have blanket provisions that prohibit banks that issue their cards from paying Internet gambling transactions. But late last year, Visa USA started auditing Internet casinos to make sure they were accurately identifying transactions as wagers. The idea behind the audit was to make sure that casinos did not try to report gambling activity as another type of transaction to trick a bank into approving the transaction. "People don't like being told what they can and can't do with their money," said Simon Noble, chief executive of Intertops.com, an Internet casino based in Antigua. He said that efforts by United States financial institutions to clamp down had begun to have an influence in Europe, where German customers in particular were beginning to find their transactions being denied. "It's very frustrating," Mr. Noble said. |
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