PayPal and Neteller Prepping For Imminent Return To US iGaming Market
Following the reinterpretation of the famously hated UIGEA act of 2006 which forced the likes of PayPal and Neteller out of the US iGaming market, especially after the arrest of Neteller board members on US soil, the two companies have begun to make plans to re-enter the once lucrative market.
With the likes of New Jersey now offering online poker and online casino games to players within its borders, the online payment processing companies, who effectively act as middlemen between the casino and the player, have made plans to re-enter the US market. The exact dates are not yet known but it should be towards the end of 2014 and the beginning of 2015 as the laws surrounding online gambling have been reinterpreted to allow for online betting, with the exclusion of sports betting. This is even more important when, considering the success of New Jersey’s entrance into the online gambling market, other states have been quick to follow suit and take advantage of the newly regulated and quickly emerging iGaming market in the US.
Following the original poker boom, Neteller and PayPal were, between them, processing a majority of the payments between casinos, poker rooms and the players. Both companies were praised for the speed and ease at which they processed payments and allowed players to send and receive money. However, when they were forced to shut down operation under the threat of lawsuits from the Federal Government, they quickly pulled out and by the time they PayPal was bought out by eBay, they had closed up shop completely.
With the regulated markets having a serious problem area with both Visa and MasterCard and other similar payment options having long processing times that eat into online gamers much needed play time, PayPal, with over 150 million users worldwide, will be a breath of fresh air for all online gamers as it will allow them to transfer money with ease. In a recent study of global attitudes towards time, money and tech PayPal said: “While we’re not yet in the business of solving gridlock, we know that wherever we can shave time from the payments process for our 148 million active account holders, we’re giving them back one of life’s precious resources”.
It wasn’t long ago that Neteller was synonymous with the online gambling industry and estimates put that nearly 80 percent of all online casino and online poker transactions were done via Neteller. Also, online gambling accounted for nearly 95 percent of its revenue stream. Now though, Neteller, under the name NBX Merchant Services, has been awarded an iGaming license as a Vendor Registrant in New Jersey, the first state to legalize online gambling and poker within its states borders.
The re-emergence of Neteller within the regulated states of the US will be welcomed by many an online gambler as transactions, particularly those of Visa and Mastercard, do not always go as smoothly as hoped. Credit card rejection is an extremely problematic area with the likes of Visa rejecting 35 percent of transactions, Mastercard rejecting 50 percent and American Express denying all online gaming related transactions submitted by its users.
Whatever the reasoning behind the sudden reversal by both companies, it can only bode well for US consumers who have long had an uphill battle to deposit playing money and withdraw any winnings, even from completely legal casinos. When the two companies once again emerge within the US, it will make life a lot easier for online gamblers and poker players alike who have had long had to suffer at the hands of the Draconian laws placed on them by the Federal Government.
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