Declined Transactions Hurting Revenue from Online Gambling in New Jersey
New Jersey voters approved online gambling in November, and it seems to have gone over well with a majority of the state’s residents. Governor Chris Christie originally estimated that the gambling industry would bring in $1 billion in revenue for the state in its first year.
But that is not happening. A significant number of gambling-related credit card transactions are being denied by credit card companies. In addition, betters seem to be encountering problems when attempting to deposit funds in their online betting accounts.
As a result, only about 44% of credit card transactions are approved for online gambling purchases in New Jersey. Matt Katz, CEO of the payment processor CAMS LLC, said that this “is the single biggest thing that’s holding [online gambling in New Jersey] back.”
Online gambling has only yielded about $31.6 million since its approval, and Wall Street analysts predict it will reach a total of $200 million in the first year.
Approval rates vary by credit card provider. Deputy Attorney General Mary Jo Flaherty from the state Division of Gaming Enforcement said that, on average, MasterCard has approved 73% of their transactions, while Visa has only approved 44%. American Express and Discover cards are not accepted for online gambling.
Flaherty says her department “continues to work directly with financial institutions, banks and credit card companies and relevant regulators and authorities with respect to the legality of online gaming where authorized as in New Jersey, as well as regarding the appropriateness of payment processing for legalized online gaming.”