Online poker players in Nevada, New Jersey and Delaware, are currently still experiencing payment problems due to a policy by leading banks not to allow the transfer of funds using credit cards even though online gambling has been legalized and regulated in these states.
Wells Fargo, J.P. Morgan Chase and American Express are among several institutions who have publicly stated that they will not be honoring transactions to or from any online gambling sites in these states, whether it is legal or not.
Steve O’Halloran, the director of public relations and public affairs for Chase Card and Merchant Services, stated that his bank is firm on the matter and that they do not allow any credit card transactions for this activity.
Sanette Chao, a spokeswoman for American Express also issued a statement wherein she explained that the giant US financial institution would not allow the use of the credit card for gambling purposes.
According to Chao, American Express’s decision not to allow the use of the card for gambling is due to the fact that gambling services account for a huge number of card member credit losses and customer service disputes.
However, it appears as if the banks are refusing to adapt to the three new legal online gambling markets in the United States due to the unclear federal Unlawful Internet Gambling Enforcement Act. Wells Fargo admits that this, together with the unclear interpretation of the 1961 Wire Act is the reason for the bank refusing to allow payment by credit card to online gambling sites.
