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Depositing is a key element behind playing online casino games. If you can't deposit, then you can't play for real money.
Unfortunately, not everybody is able to fund their account with ease. Some gamblers see their bank transfers and credit card casino deposits rejected.
A common misconception with the latter is that the credit card brand (e.g. Visa) blocks the deposit. In reality, the bank that issues the card is stopping the transaction.
In situations like these, you may wonder why banks are so apt to block gaming deposits, especially if you live in a completely legal jurisdiction.
This guide discusses more on the process that leads to financial institutions rejecting online gaming transactions. It also covers alternatives for getting around this issue.
What Happens When Your Casino Deposit Is Rejected?
Every banking institution has their own policy on internet gambling. Some are liberal with the matter, while others are staunchly against serving online casino players.
You're more likely to see a credit card or transfer deposit rejected in the latter case. Such banks have stronger policies against allowing casino-related transactions.
Software is their first line of defense when catching online casino deposits. A software program can monitor transactions and reject anything suspicious.
Banks may also employ individuals to manually go through transactions and look for anything that goes against their institution's policies.
Of course, not every casino deposit gets rejected in these cases. But a bank that's against internet gambling may block over 50% of them.
Offshore Casino Deposits Are Especially Susceptible
Some banking institutions don't like online casinos in any form. However, they're especially against offshore online gambling.
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The latter refers to gaming sites that operate outside of the countries they're serving. They also typically don't obtain licensing (if applicable) in markets where they operate.
Most banks don't take chances with such matters. They solve this issue by simply prohibiting any transaction they catch related to internet casinos.
Banks Even Turn Away Legal Online Casino Deposits
Many states and countries have legalized internet gaming. Therefore, the licensed casinos that operate in these jurisdictions are completely accepted.
You might think that every financial institution would allow bank transfers and credit card transactions to casinos in such cases. Strangely enough, though, certain institutions will still block deposits in legal markets.
The reasoning usually comes down to the situation:
- The bank operates in a state/country that previously banned online gaming, or at least had restrictive laws surrounding the matter
- The jurisdiction in question legalizes internet casinos
- The laws could be changed or challenged at some point
- The bank decides to continue rejecting gaming deposits until everything is settled
This situation is most common in the US, where individual states have the ability to regulate online casinos. However, the federal government has never legalized the matter.
With that said, certain banks aren't entirely comfortable with allowing deposits in this case. They want firmer laws before they're willing to serve internet gamblers.
In reality, these banks wouldn't run into any trouble if they do serve such a legal market. But they'd still rather not take unnecessary risks just to be involved with online betting.
Why Are Banks Against Online Gambling?
A bank's reasons for instituting an anti-internet gaming policy can vary from one company to the next. In the US, though, many financial institutions are still leery of online gambling due to certain laws and legal events. Here are the primary laws that scare banks away from this industry.
UIGEA
The Unlawful Internet Gambling Enforcement Act (UIGEA) came into effect in 2006. It prohibits gambling businesses from serving states that have outlawed gambling.
Contrary to popular belief, the UIGEA doesn't completely ban online gaming. It just prevents them from taking payments from states where internet gambling is illegal.
Despite its narrow focus, this law has had a lasting impact. It has scared off many banks and payment processors from facilitating US-based online casino transactions.
Black Friday
Black Friday marks the day when the federal Attorney's Office for the Southern District of New York took action against several unregulated online poker sites.
With help from the US Department of Justice (DoJ), the attorney's office successfully indicted key figureheads from these sites for money laundering and bank fraud.
John Campos, a part owner and Vice President of SunTrust Bank (Utah) at the time, was arrested for miscoding poker deposits so that they passed through bank channels.
Campos processed transactions for PokerStars and Full Tilt Poker in exchange for separate $10 million investments in SunTrust Bank. He pleaded guilty to a single illegal gambling charge and served three months in prison.
Of course, all bank executives likely steer clear of helping gambling sites in the same manner that Campos did. But the latter shows what can happen if a financial exec steps outside the lines to help gaming sites.
Wire Act
The Federal Wire Act of 1961 bans the offering of gambling across state lines. The Wire Act was enacted over three decades before the consumer internet became available.
Nevertheless, its legal language loosely applies to online casinos, depending upon who's making the interpretation.
New Hampshire successfully sued the DoJ to prevent their opinion from changing any laws. After all, the Granite State already had a thriving online lottery and didn't want the new interpretation affecting their business.
Even still, the DoJ's amended opinion shows that legal agencies may try to rework existing gambling laws. If the latter efforts succeeded, then banks would suddenly need to change everything around and start rejecting deposits in once-legal jurisdictions.
Alternative Online Casino Payment Methods
If your gaming deposits keep getting rejected, then you should definitely pursue an alternative payment option. Here are some other banking methods you can use at online casinos.
Not all of these options may not be available in regulated markets. However, they are widely available to grey states that must use offshore gaming sites.
Bitcoin
This famed cryptocurrency is gaining more and more mainstream attention. Most people are interested in Bitcoin for its investment potential.
However, BTC does have utility as a payment method too. It's especially popular at offshore gambling sites, which rely on Bitcoin to get around the UIGEA.
Using Bitcoin for online gambling is relatively easy to use once you get the hang of it. You can set up an account at exchanges like Coinbase and Gemini and quickly purchase BTC.
From here, you obtain a wallet address from the casino (recipient address). Next, you head back to your exchange account and send Bitcoin to the relevant casino address. Your funds should arrive after a short while.
Other Cryptocurrencies
BTC isn't the only game in town anymore when it comes to cryptocurrency casino banking. Other coins, such as Ethereum, XRP (Ripple), Bitcoin Cash, and Monero are gaining acceptance at casino sites.
You'll experience little to no adjustment regarding the deposit process when moving from Bitcoin to any other crypto. You can also find most mainstream coins at the aforementioned exchanges.
Prepaid Cards
Prepaid cards allow you to fund a casino account with no hassle. You simply purchase them at convenience stores or online and load funds on to them.
From here, you visit a gaming site that accepts the relevant prepaid card. You place a deposit by using the special PIN number that's unique to the card.
Neteller and Skrill
Neteller and Skrill do have some rules in place regarding internet gambling. These e-wallets try to avoid letting you do anything that would break laws in your jurisdiction.
Largely speaking, though, Skrill and Neteller are solid alternatives when your credit card deposits aren't going through. You can even use either of these e-wallets to find an offshore casino account. The only catch is that most US citizens don't have access to Neteller and Skrill, and also you may not qualify for casino bonuses.
Should You Try Depositing With Rejected Credit Cards Again?
Depending upon where you live, you may only have a 30% to 50% chance of making a successful credit card casino deposit. On the times when you're rejected, you may wonder if it's worth trying to fund your account again.
Provided you have a bank transfer or credit card deposit that's rejected, you might want to review the specific bank's policies on gambling.
Some institutions, such as Bank of America, have a strict anti-gaming stance. In this case, you should avoid trying to redeposit since you're unlikely to have any success.
Conclusion
Your chances of depositing with credit cards and bank transfers depend upon multiple factors. The bank in question and your location carry heavy importance here.
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Sometimes, deposits don't go through even when you live in legal online gaming jurisdictions. You may become extremely frustrated at this point.
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Luckily, though, alternative casino banking means exist. You can try cryptocurrencies, prepaid cards, Neteller, or Skrill.
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As long as you're not breaking any laws in your jurisdiction, then you don't have to feel badly about using other means to complete deposits.
