New Jersey, Nevada, and Delaware have faced some trouble establishing online casinos due to credit card operators. Changes implemented on April 17, 2015 are set to open new doors for these states and their online gaming locations. Credit card processing companies did not want to handle gambling transactions online due to the Unlawful Internet Gaming Enforcement Act. The UIGEA guidelines currently prohibit financial transactions with any online casinos. Master Card, American Express, Visa, and Discover have assessed payment processing for online casinos and have a workable solution.
New merchant codes specifically created for online gambling transactions have been created. These codes can only be used for transactions where online gambling is legalized. However, the banks in these three states, and possibly soon – Pennsylvania, will need to adopt the new coding system in order for deposits to be made with credit cards. The system has been improved for players, but it does not mean the changes by the top four credit card companies will be accepted by local banking systems and merchant processors who have received mixed signals from Washington in regards to acceptable procedures and reporting requirements.
The three new Merchant Category Codes are as follows: State operated online lotteries will now use code 7800 rather than the former MCC 9399 which can refer to any government services; State run online casino games including poker will reference code 7801, and state managed online horse and dog racing transactions will be coded as 7802.