Payment Processors Still Refusing NJ Igaming Deposits

New Jersey’s nascent online gambling industry may currently be just one tenth of pre-regulation estimates, but the industry has shown signs of improvement lately with March’s revenues of $11.9 million up 15% compared to the previous month.
The industry has been busy ironing out various issues which have plagued the state since NJ launched its first site in November 2013, such as geo-location which now boasts a 95% success rate. However, one huge problem still continues to frustrate attempts to offer a streamlined online gambling environment, namely the ability of players to actually deposit funds on the various sites in the first place.
In fact, the situation is so problematic that Central Account Management System (CAMS) LLC recently stated that a mere 46% of all credit card transactions used to deposit money on NJ igaming sites actually ended in success. This is a worrying admission from a company which is responsible for the online payments of New Jersey’s biggest internet operator, including market leader Borgata Hotel Casino (Party Poker), Trump Taj Mahal Casino (Ultimate Gaming) and Trump Plaza Hotel (Betfair).
This has subsequently lead the company’s CEO Matt Katz to conclude that restrictive credit card practices remains “the single biggest thing that’s holding it [the industry] back” in New Jersey.
All this is in spite of the fact the US DoJ now views all online gambling activities outside of sports wagering in harmony with the UIGEA. Nonetheless, according to Gaming Enforcement Deputy Attorney General Mary Jo Flaherty, just 73% of attempted transactions by MasterCard are successful, which falls to 44% for VISA. American Express and Discover, on the other hand, are not approving any transactions whatsoever, and as American Express spokesman William Tsang, previously commented:
“American Express does not do business with high-risk industries and we prohibit the use of the card for any gambling services.”
Unfortunately, not only do major financial institutions’ refusal to allow transactions create a negative impression of the industry, but it also frustrates potential players who may even conclude online gambling was still against the law in New Jersey. Furthermore, millions of dollars in revenues are being lost by the industry as a whole, and as one NJ player, Matt Pineault, explains:
“As a player, it is worrisome that people aren’t able to get money on the site. To have people who want to play and deposit not be able to is terrible. Depositors are the lifeblood of the poker site, and without them they obviously can’t survive.”