Source: Pixabay No Attribution Required

The unprecedented growth of the US online casino industry has facilitated the development of multiple payments processing options. As the front-runner in the global online gaming boom, the US market has tremendous potential. Regulators across the United States have put in place a robust framework of safeguards to support fully licensed gaming operations at state level. With multiple US online gaming markets open across the eastern shore board, including Delaware, New Jersey, and Pennsylvania, and online poker operations in Nevada, it is clear that the winds of change are bringing online gaming to millions of people countrywide.

The Federal Government has effectively relegated the legalization of online gambling activity to individual states, as evidenced by the SCOTUS (Supreme Court of the United States) decision to overturn PASPA (Professional and Amateur Sports Protection Act) of 1992. New Jersey lawmakers successfully petitioned the highest court about the ill effects of federal government overreach with a commandeering provision. The 6-3 vote in favor of declaring PASPA ‘unconstitutional’ was a watershed moment for the entire iGaming industry. While the sports leagues attempted to argue in favor of pre-emption, the Supreme Court justices believed there was, ‘…no way to understand the provision prohibiting state authorization as anything other than a direct command to the states which is exactly what the anti-commandeering rule does not allow.

With individual states now able to determine for themselves whether to permit fully regulated online sports betting, the next logical step is the provision of secure banking options for legal-age bettors. Several laws over the years have come to shape the arena where payments transfers to online casinos are concerned. Foremost among them is the UIGEA (Unlawful Internet Gambling Enforcement Act) of 2006. This law mandates that no entity or individual may accept funds from a person participating in illegal online gambling activities. Incidentally, the UIGEA is an add-on to the Safe Port Act. The complex legalese around payments transfers vis-a-vis online casinos muddies the waters somewhat, but it’s up to individual states to determine the types of payments processing options for online casinos like Visa, MasterCard, NETELLER, Skrill, PaySafeCard, EcoPayz, Maestro, Trustly, Sofort, Bitcoin, Ethereum, PayPal and others that can be used.

The Cashier at Online Casinos: What Options Are Available?

MasterCard – MasterCard ranks as one of the most popular credit card providers in the country. According to Statista, some 235 million MasterCard credit cards were circulating in the US in Q1 2019. Both deposits and withdrawals are possible, and transactions are instantly processed. Legal-age players using MasterCard are required to provide identification to validate ownership of the credit card. Unlike e-Wallets, no lengthy registration forms are required to use MasterCard. Full transparency is required with MasterCard, and players must submit all necessary documentation in this regard. The main advantage of using MasterCard is that players can easily deposit and withdraw with this credit card option.

Source: Statista VISA in the US and Internationally

Visa – Visa is the ranking credit card provider globally, including in the US. According to Statista, there were some 336 million Visa credit cards circulating in the US during Q1 2019. Outside the US, Visa cards numbered 788 million. Visa is highly regarded for its security features. Encryption technology ensures that the integrity of information is safeguarded at all times. Visa is available as a credit card and a debit card, and online casinos typically offer high deposit limits on these cards. Visa prepaid cards are associated with low transaction fees, facilitating quick and easy transfers from your Visa account to your online casino account. Responsible gaming is further encouraged by using Visa prepaid cards since players can limit the amount of funds they are gambling with. The Visa debit card serves as the perfect foil for online casino players who don’t have access to Visa credit cards.

Source: Distribution of global phishing attacks aimed at online payment systems (Statista)

Skrill – Skrill (formerly Moneybookers) is an e-wallet used for transferring funds online at low cost. This is one of the most popular online payment methods for players in online casinos in the US. It offers many unique benefits including rapid money transfers, secure payments processing for online casino players, and low-cost money transfers. Skrill users don’t have to worry about credit cards since funds can easily be added to the online casino balance from Skrill.

Among the many benefits of using this payment processing option are no additional fees, limited restrictions, no third-party account verification, complete privacy (no need to disclose credit card information or banking information), et cetera. Established in 2001, this online payment service is geared towards rapid transfers at an affordable cost. Skrill is also the EGR Awards Winner for corporate services provider of the year, GA Gaming Awards winner, and the Prepaid 365 Awards Runner-Up. Skrill is also highly secure, with the lowest reported incidence of global phishing attacks (Q1 2016 Statista), making this the preferred option for security-conscious players.

Source: PaySafeCard for Online Casino Payments

PaySafeCard – PaySafeCard has carved a niche for itself in the global online payment processing industry. With over 20 years in the game, PaySafeCard topped $80 billion in transactions in 2017 (US figures), with much broader global operations. PaySafe offers a wide range of products including digital wallets, platform services, bank transfers, card payments, point of sale (POS), pay later, cash online and more. This payment option is useful for deposit purposes, and it enjoys widespread acceptance throughout the online gaming world. Launched in Austria, PaySafeCard quickly became a global phenomenon.

Rather than using a debit card or credit card to fund a player’s account, PaySafeCard uses an e-voucher system with 16-digit PIN numbers. Security is the name of the game with PaySafeCard. All cards are protected by PIN numbers. All PaysafeCard vouchers are unhackable, and proactive protections are in place to prevent any scams from taking place. For added protection, PaySafeCard offers the ability to LOCK PIN, while still allowing the authorized account holder to withdraw any remaining balance on the card. Skrill is a particularly popular option for online casinos in the US.

Source: CoinMarketCap (October 11, 2019) Prices and Values Subject to Extreme Volatility

Bitcoin and Ethereum – Cryptocurrency options are increasingly popular at online casinos today. The premier digital currency – Bitcoin (BTC) – was created by an enigmatic persona known as Satoshi Nakamoto. Bitcoin was designed as an alternative to fiat currency (fiduciary), and is not dependent upon gold reserves, central banks, or the actions of government authorities. It acts as an independent, largely unregulated, anonymous, blockchain-based online payment system where value is transferred on the blockchain ledger from one party to another.

Online casinos which embrace Bitcoin deposits and withdrawals can facilitate rapid transfers, anonymous accounts, and no records. Provided players maintain safe and secure practices with their username/password, Bitcoin is widely regarded as a secure and preferred payment option. A rudimentary knowledge of cryptocurrency exchanges, Bitcoin wallets, and the transfer process is necessary to get started. Ethereum (ETH) is the second most popular digital currency option next to Bitcoin. Other digital currency options include Bitcoin Cash (BCH), Ripple (XRP), Litecoin (LTC), EOS (EOS), Bitcoin SV (BSV), Stellar Lumens (XLM), DASH (DASH), and USD Coin (USDC), among others.

It is worth pointing out that anyone purchasing Bitcoin or crypto in the US is subject to ID verification. A stringent framework known as KYC (Know Your Customer) is required for all purchases of cryptocurrencies. This identifies individuals for taxpaying purposes (IRS guidelines), and information is stored at cryptocurrency exchanges and handed over to the IRS.

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Thomas McCoy was born in Bethesda, Maryland and studied finance at the Kogod School of Business at American University in Washington D.C. before heading to New York and a job as a forex trader on Wall Street. Successful enough to launch his own, online forex trading platform, Thomas has long had a keen interest in the places where the worlds of finance and technology meet. As a prolific blogger, Thomas considers himself an expert on cryptocurrencies, casino asset restructuring, and emerging technologies set to change the way people do business.