Recently proposed laws aimed at cutting from the money supply to online casinos have targeted credit cards.
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MasterCard on the internet gambling restrictions have been increased upon US citizens attempting to make deposits at on the web casinos.
The legality of on the internet gambling has been long debated. The particular act of making a deposit at an online casino may fall under the Federal Wire Act of 1961. The Federal Wire Act was created in order to illegalize using telephones for the purpose of placing bets. The telephone had allowed folks who lived in areas where gambling was illegal to begin gambling in areas where gambling was legal. Online gambling deposits are required to be coded having a sic code of 7995 so that they can be identified. Many online casino operators use sic codes that are specified for other online purchases to avoid having deposits declined. MasterCard transactions using both the correct and incorrect sic codes have begun becoming declined at an unprecedented rate. The particular action sends a signal that MasterCard is preparing for the enforcement of America’s Unlawful Internet Gambling Enforcement Act (UIGEA). This act is made to ban the facilitation of on the web gambling by the banking industry.
Our elected representatives has unsuccessfully attempted to stop web gambling in the past. The taxation of online gambling is extremely difficult. Our elected representatives views online gambling as a loss of income. while voters see it as being a personal choice. This has made it very difficult to get legislation passed. In 2006 the UIGEA was put through as an attachment to a Homeland Security bill.
Online casinos operate outside of the legislation of the US government and therefore it can be difficult to enforce the UIGEA. In fact the UIGEA could only be enforced in the most serious cases. It would be impossible to investigate all dubious transactions. The real success of the UIGEA will be in creating financial barriers for new online casinos and making it more difficult for online casinos to accept deposits. Ultimately new businesses which will “launder” deposits by acting as middlemen will arise.
The long term prospects for the online casino industry probably is based on debit cards. Currently you will have a better possibility of completing an online gambling transaction utilizing a debit card than a credit card. The reason being using credit is essentially borrowing the cash to gamble from a bank. Using a debit card you are removing your personal cash from your bank account. This reduces the banks exposure. Prepaid debit cards are funded ahead of time and can just be used for the amount that was financed.
Many experts then started thinking that credit cards would disappear as a means of funding online gambling transactions, as they believe that the solution lies in some form of debit card. Currently, the odds associated with completing a gambling transaction with a debit card are better than having a credit card. This is because using a credit card is equivalent to borrowing money from the issuing bank. With a debit card, money is usually instantly taken from your account. This in turn decreases the risk to the website and bank. Still at this point the only legislation exceeded against online casinos acting outside the US is in the banking. On the internet gambling has not been outlawed.
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