Online Gaming in NJ Could Be Propelled By New Credit Card Code
The switch from one four-digit code to another could result in a big financial boost for New Jersey's online gambling industry.
Major credit card associations recently launched a new code that identifies transactions associated with only legal online gambling efforts. For years, every Internet gambling transaction was categorized by the same code, leaving the nation's banks weary of getting involved.
Now, a simple '7801' would indicate the wagering involves online casinos that are legal in three states, including New Jersey.
"This was one of the major problems with iGaming since it started, and this is a positive move right now," said Roger Gros, publisher of Global Gaming Business Magazine.
After verifying their location and identity, wannabe users would then have their credit card declined and would only be able to deposit funds through alternate methods such as wire transfers.
Gros, though, said the code switch won't be a cure-all for this issue. After all, there is a federal ban against online gaming, and banks could still be unwilling to participate.
"There will be some of them that go through, but it's still going to be a factor of educating the banks on why this happened and why they should accept this code," he said. "There's still that federal bill looming out there that says it's illegal to accept online gambling transactions."
Online gaming in New Jersey has had relatively quiet success since its launch in November 2013. Revenues grew by nearly 20 percent between the first quarter of 2014 and the first quarter of 2015. In March of this year, New Jersey online gaming posted significant revenue increases from both the month and year prior.