When the UIGEA was enacted in 2006, major financial institutions complied with the rules that prohibited the transfer of funds from American citizens to online gambling operators. Credit card companies like VISA and MasterCard were also affected by the online gambling ban, but they continue to fight for the legalization of the activity.
Because credit card companies and banks cannot process the transfer of funds from players to online casinos, Americans must find other means to do so. The lucrative business of online gambling banking has thus been transferred from major credit card providers to other online-based companies like NeTeller and Moneybookers, causing VISA and MasterCard to lose out significantly.
While continuing to comply with the law, major credit cards refuse to take the situation lying down. They have been active putting forth lobbying efforts in an attempt to further the cause of online gambling legislation.
In the third quarter of 2010, MasterCard spent $840 000 on lobbying, an increase of more than 20% of what the company spent during the same period in 2009.
It is too early to see whether or not MasterCard’s efforts have been successful. The online gambling bills drafted by Harry Reid and Barney Frank both encountered a great deal of difficulty with Congress, but major credit card companies are hopeful that 2011 will present more optimistic opportunities.
