New Jersey will introduce a gambling credit card code by spring, according to the state’s Division of Gaming Enforcement (DGE).
Credit card acceptance rates have been one of the biggest stumbling blocks to the growth of the New Jersey online poker and casino gaming market since its inception in November 2013, with many credit card companies automatically refusing to process transaction, a hangover from UIEGA.
Although improvements have been made in this area, recent statistics showed that 73 percent of Visa and just 44 percent of Mastercard transactions on New Jersey’s online gambling sites actually go through.
However, in a statement released this week by the DGE, the regulator said that, following negotiations with the New Jersey Department of Banking and Insurance and the US Office of the Comptroller of the Currency, the new codes have been given the go ahead and are expected to dramatically increase the acceptance rate across the board.
“As the banking industry becomes more familiar with legalized Internet gaming and patrons become more educated about the various options for funding their accounts, further improvements are expected in this area,” said DGE president David Rebuck.
90 Percent of Online Gambling Revenue
Rebuck also highlighted the fact that a new wave of payment processing companies, such as Neteller, have been approved to do business and will further bolster the ease of transactions between customer and merchant, helping to drive the market in 2015.
The DGE statement detailed the regulator’s reflections on the first full year of the online gaming market in the Garden State, as well as outlining its goals for 2015. Regulation, it said, has largely been a success, despite revenues vastly lower than pre-regulation predictions.
The DGE pointed to the fact that over New Jersey accounted for 90 percent of all regulated online gaming revenue and that from January 2014 through October 2014, online gaming generated $120 million in revenue. Online poker, by itself, took $25 million, the agency added.
Pool-sharing with Nevada and UK
It also cited the technological strides made in geolocation and fraud detection technology, as well as the efficiency of its responsible gambling program as reasons to celebrate the first 12 months of the fledgling online gambling market.
Looking to the future, and to the delight, no doubt, of New Jersyan poker player, the DGE reiterated that the building of interstate and international compacts were of high priority in 2015, and that it has held talks with Nevada and the United Kingdom, although no agreement has been inked as yet.
“This type of cooperation between jurisdictions is very important for building liquidity in peer-to-peer games such as poker. The legislation that authorized Internet gaming specifically permits the Division to enter into multi-jurisdictional agreements,” said Rebuck. “The Division is open to discussions in this area and always seeks to ensure that any agreeme