Credit Card Issues May Impact US Sports Betting

Vegas Online Casino Weekly:

After the US Supreme Court’s ruling to legalize sports betting came forth on May 14, lawmakers have begun to deliberate how they can validate the option and offer sports wagering in their individual states. Although there is plenty of money to be made in this new industry, one thing that may impinge the process of a sports betting boom is credit cards. As of today, certain credit cards issuers do not allow their clients to use their cards for sports betting purposes. This could be a major issue as most players in the States use credit cards for major transactions, including gambling.

Players want to have a nice selection of approaches to place their wagers when it comes to gambling. Credit cards are among the chief payment methods that players desire to use when visiting casinos or engaging in online gaming. At present, however, corporations such as Citigroup, American Express and JP Morgan prohibit their credit cards to be used for transactions involving sports wagers. As a whole, credit cards companies are being cautious as they could make tons of money within the sports betting business, but may also be at risk. Players are wagering around $150 billion of dollars a year on illegal sports wagers, so there is a lot of money to be made.

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However, if a multitude of clients use a credit card to bankroll their wagers and then decide to default on what they owe, the lender could be stuck footing the bill. Credit card corporations being cagy of the gambling industry is nothing new. When Nevada, Delaware and New Jersey began to offer online gambling back in 2013, deposits and withdrawals were an issue. While the gambling industry was legalized in all three states, credit cards companies were not spry enough to get on board with allowing their clients to use their cards to fund online casino and poker player accounts. Since then, improvements have been made and payment processors are more open to the idea of online gambling.

Payment issues in the past have geared US online gaming operators to offer options. The latest occurrence of this comes from the state of New Jersey. PlaySugarHouse began accepting Wyrz prepaid cards providing players with an easier alternative to credit card use which allows their clients to use their credit card to purchase a prepaid card then set to be used to fund a real-money account at the online casino. Payment processors like Worldpay have started working with credit card companies like Visa and Master Card to allow gambling transactions via credit card. Indeed, Worldpay is allegedly working with banks to school the facilities on how they can make policy modifications based on the recent Supreme Court ruling.

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