Major credit-card issuers are still not allowing online bets, even after legalising online betting in some US states, according to a report.
Recently, Delaware and Nevada legalised Internet gambling, and New Jersey is said to be poised to be on verge of legalising it on 26 November, reported the Bloomberg News.
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Major American card issuers Bank of America, Wells Fargo and American Express, along with PayPal, aren’t allowing the transactions, according to the news agency.
A researcher at H2 Gambling Capital estimates that the rejections may hamper the online gambling which is projected to reach $7.4bn in annual revenue in four years.
Though Visa and MasterCard permit gambling-related credit-card transactions in states where it’s legal, but some issuers have concerns about potential liability for underage wagering or other violations, Bloomberg News reported citing the American Bankers Association.
However, American Express and PayPal have imposed blanket ban on processing gambling related transaction.
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By GlobalDataAfter US Congress passed the Unlawful Internet Gambling Enforcement Act in 2006, banks in the country programmed their card-payment systems to reject gambling transactions. The law barred businesses from accepting payments for illegal online bets.
