New Jersey is to introduce a new credit card code for the processing of all online gambling payments made in the US state.
The launch comes after the US Office of the Comptroller of the Currency and New Jersey’s Division of Gaming (DGE) and Department of Banking and Insurance identified a concerning rate of failed payments for online gaming services in the state.
Despite having first regulated internet gambling in November 2013, players in the state have continued to report issues when attempting to deposit or withdraw funds from licensed online gaming websites.
A number of major credit card companies have also been declining approval for such transactions due to their uncertainty over the online gaming market in the US.
While Visa has approved approximately 73% of internet gambling transactions in the state, the approval rate by rival operator MasterCard was much lower at just 44%.
Although regulators in New Jersey have confirmed the introduction of the new code, it will not come into effect until spring of this year.
A DGE spokesperson said that although “further improvements are expected” in the sector, a period of patience is also required “as the banking industry becomes more familiar with legalised internet gambling”.
source : www.igamingbusiness.com