US states Nevada, Delaware and New Jersey hope that changes implemented to credit card systems on Friday will boost online gambling profits.
Difficulties with credit card processing for online gambling related transactions has affected the gambling industry in the US. Credit card issuers have been reluctant to approve online gambling transactions since the implementation of the Unlawful Internet Gaming Enforcement Act.
MasterCard, Visa, American Express and Discover are rolling out new Merchant Category Codes for legal online gambling transactions. This will identify transactions for purposes of online gambling.
It will be up to the individual banks that issue credit cards to implement the new MCC’s, which will in turn eliminate the problem of rejected deposits with online casinos in legalized states.
The new MCC’s are as follows: state-operated online lotteries (7800); state-run online casino games (7801) and state-managed online dog/horse racing (7802).