Banking establishment is held back by anti-gambling prejudice
While U.S. states race to create better climate for gambling industry on their soil, after recent historic decisions by Supreme Court in this sphere, there is still one possible and somewhat unexpected barrier to their plans. Gambers Post assures its readers that majority of American banks are not too kind to those of their clients, who wish to use their credit cards for wagering, race and sports betting and poker. Despite the fact that estimated annual betting market in the United States is around 160 billion dollars, even major issuers are often afraid to allow their customers to take part in such gamble. It sometimes creates situations, when previously reliable borrower struggles with return of funds. Thus, even the likes of Citigroup and American Express only allow to transfer funds on online gamble from stable deposit accounts, not from credit limits.
Gambers Post can testify that these banks are at odds with payment networks (Mastercard, Visa, etc.) and some processors (Worldpay) over this issue. Payment networks have worked tirelessly since 2015 to ease life for bettors by changing merchant classification codes. When the gambling casino company is properly licensed in a country, has government owners or co-owners, or has a long history of successful cooperation with regulating authorities, it receives a separate code, different from those for newcomers of this business. Thus, it is much easier for a citizen of Western country to enjoy his favorite pastime. Another great casino news is that these customers will always be able to transfer their entire credit limit to verified service provider with such code, which is not always the case when dealing with providers with “usual” code.
Joe Pappano from Worldpay Inc. remains optimistic about the ability of major American banks to adapt. When talking to Bloomberg online magazine, he said that market size will eventually force issuers to rethink their acceptance strategy. And while CEOs of such ventures as JPMorgan Chase might be too uptight to introduce these changes with genuine enthusiasm, market forces and democratic will of their customers will do the job. And if they won’t conform, there is always a looming menace of Bitcoin taking over all transactions related to gambling news, which prudish bankers find morally questionable or controversial.