Visa, Mastercard No Longer Permits Deposits For Online Poker Sites, Rooms

Several online gambling sites no longer allow payments through Visa and Mastercard, according to Boston area poker enthusiast Donny Chia.

Both Mastercard and Visa control a large chunk of the credit industry and a ban involving both payment schemes is anticipated to result in tons of lost revenue.

Reports have spread throughout the internet claiming that the deposits of money made with both cards will be regulated by the web from the US, according to Chia. Online poker players from the United States are known to use their credit cards to make deposits.

Several reports state that Mastercard has resorted to restricting deposits made on the internet in online poker rooms, bingo halls, casino and any online gambling-related site from the US.

There are no strict rules on online poker gaming but recent developments reveal that credit deposits can be tracked.

The changes by the likes of Visa and Mastercard show that the state is extending its legal arm through the Unlawful Internet Gambling Enforcement Act (UIGEA) to attempt to regulate online gambling sites, especially those engaged in illegal practices.

The UIGEA was put in place during the Bush administration as an attachment to the Port Security Bill. The bill has unknowingly, however, caused problems for the legalized poker online industry. Gambling is actually a right to the citizens of the nations, in the same way that such activities are permitted in casinos and lottery draws.

Massachusetts Democrat Barney Frank, on the other hand, has been at the forefront of legalizing online poker for enthusiasts from the comforts of their home. Frank said that the state will benefit economically through online poker, similar to online poker clubs overseas in China, Japan, Europe and Canada.

Credit card issuers are given until July this year to comply with their legal obligation with regards to the new laws in an effort to curb illegal gambling online. Failure to comply will mean that the uncooperative companies will be prosecuted. The UIGEA submitted guidelines saying that financial institutions are banned from facilitating money deposits through credit cards for gambling-related entities which are 'situated abroad', including bingo halls and online poker rooms.

However, poker players may still rely on alternative schemes to deposit their money online which would not hold them culpable to the law, such as e-checks, bankwires and some credit cards outside the jurisdiction of the UIGEA. Such developments have prompted both MasterCard and Visa to ban the deposit of money to online poker rooms.

Poker players are urged to cooperate with the law and keep in mind that Mastercard and Visa no longer permits them to use their cards to make deposits.

Jennifer Brown

Jennifer Brown, an external business consultant working with a Fortune 500 company, has years of experience to her credit. Despite having a busy schedule through the day, she takes time out to write articles dealing with credit cards, payday loans and other financial aspects. She has completed her Bachelor degree in Financial Services from Columbia University and has been actively involved in various activities for the betterment of society.