Online casinos, sportsbooks, poker rooms and lotteries can’t simply sign up for a standard payment account. Before a bank can process real-money wagers, it needs proof that the bets are legal where they’re placed, and most mainstream processors won’t take the risk at all.
This guide is for real-money operators and explains what a bank needs to see. If you run a skill game, fantasy sports contest, sweepstakes or betting-tips service, see our guide to merchant accounts for online gaming, sweepstakes and betting businesses. This is general information, not legal advice.
Why banks treat gambling as high risk
- Federal law. The Unlawful Internet Gambling Enforcement Act (UIGEA) bars gambling businesses from accepting payments for unlawful internet bets, and it requires banks and payment systems to have procedures to stop them.
- State and country rules. Whether a bet is lawful generally depends on the laws where it’s placed and received, so one operator can face different rules from one customer to the next.
- Card network rules. Gambling transactions must be correctly coded, typically under merchant category code 7995, and card networks expect banks to register gambling merchants. Many card issuers then decline those codes.
- Disputes. Losing players may dispute a deposit, and family members may use a card without permission.
- Money laundering and fraud. Regulators expect operators to verify customers and watch for suspicious activity.
- Harm to players. Banks want to see age checks and responsible-gambling controls.
Your licence comes first
For a gambling operator, the licence is where the application really starts. Under the banking guidance on UIGEA, a bank’s due diligence on a commercial customer centers on a licence from the relevant state or tribal authority that expressly authorizes the internet gambling business. If no such licence applies, the operator needs a reasoned legal opinion showing that it doesn’t handle restricted transactions.
Expect a bank to check:
- Which authority issued the licence, and whether it’s current
- That the licence covers the exact product you’re offering: casino, sports, poker or lottery
- That it covers the place your customers are actually in
For operators outside the US, the bank will look at the standing of your licensing authority and at each market you accept players from. Accepting players from a country or state your licence doesn’t cover can undo an otherwise good application.
Which businesses this covers
- Online casinos
- Sportsbooks and race betting
- Online poker
- State, tribal and licensed lotteries
- Platform and white-label operators running licensed brands
What underwriters will ask for
- Your licences, or a reasoned legal opinion if no licence applies.
- Geolocation controls. How you confirm where a player is and block restricted places.
- Know-your-customer checks. How you verify identity and age, and when you do it.
- Anti-money-laundering procedures. Your written program, your responsible officer, and how you monitor transactions.
- Responsible-gambling tools, such as deposit limits, time-outs and self-exclusion.
- Payment flows. How deposits work, how you pay out winnings, and who holds player funds.
- Game and platform details, including any testing or certification of your games.
- Ownership. Every significant owner and any regulatory history.
- Processing history and the standard documents: business registration, owner ID, and a voided check or bank letter.
How to keep a gambling account healthy
- Keep your licence current. Tell your processor at once about renewals, conditions or regulator action.
- Never miscode transactions. Running gambling under another category is a serious violation, whatever anyone offers you.
- Review your geolocation rules whenever a state or country changes its law.
- Keep player records: logins, device data, deposit history and accepted terms. They’re your evidence in a friendly-fraud dispute.
- Use a clear billing descriptor so players and their families recognise the charge.
- Offer other payment options. ACH and eCheck can help where card issuers decline gambling transactions, as long as they’re allowed in your market.
See also: How High-Risk Businesses Can Reduce Chargebacks and What Is a Rolling Reserve, and Why Do High-Risk Accounts Need One?
Frequently asked questions
Can I get a gambling merchant account without a licence?
If your business takes real-money bets, expect to need a licence. If you believe no licence applies, a bank will want a reasoned legal opinion, and it may still say no.
Why are my players’ cards being declined?
Some card issuers block gambling codes, whatever your merchant account looks like. Offering other lawful payment methods can help.
Do you work with offshore operators?
It depends on your licence and on where your players are. We can’t place operators that accept bets where those bets are unlawful. Tell us your licence and your markets when you apply.
How is this different from a gaming merchant account?
Gaming and sweepstakes businesses often have no gambling licence, and they rely on a legal opinion about how they’re structured. Real-money gambling starts with the licence and has stricter coding and registration rules.
Talk to us about your gambling business
Safe Merchant Solutions has over 15 years in high-risk processing and more than 25 banking partners. A specialist reviews your licence and your markets before the application goes to a bank.
Get Approved or start a Live Chat to talk through your options.
