By toughening licensing requirements for iGaming processors, a proposed bill in New Jersey seeks to alleviates the issues players are having making transactions.
One of the primary issues holding New Jersey’s nascent iGaming market back from reaching its full potential is the unacceptable rate in which transactions are declined. According to the Division of Gaming Enforcement, an alarming 56 percent of all Visa and 27 percent of MasterCard transactions are rejected. Combined with the myriad of client-side and geolocation issues prevalent on most New Jersey networks, the cashiering issues experienced by NJ players have prompted many of them to abandon regulated gaming sites – at least until a resolution is met.
The Garden State’s operators have already taken some measures to increase transactional success rates by introducing alternative funding options, such as the eWallet Skrill and Neteller.
A bill introduced in New Jersey in February proposes that these processors be required to attain a casino industry service license in order to continue operation. Oddly enough, the bill’s aim is to facilitate the depositing process.
To elaborate: According to State Senator Jim Whelan, by imposing harsher requirements on payment processors, the banks will gain increased trust in them, thus making it easier for players to deposits funds onto a regulated iGaming site.
But Whelan’s argument is not without its flaws.
Whelan’s argument somewhat misguided
The problem with Whelan’s sentiment is that the payment processors already have little problem receiving deposits from credit cards companies or their issuing banks. In fact, Skrill and Neteller exist almost solely as a workaround solution for players who find it impossible to transfer funds directly onto a gaming site.
By imposing more vigorous licensing requirements upon them, how exactly will that change the consumer experience?
Perhaps Whelan was indicating that if the DGE exhibited a more firm regulatory commitment towards payment processors, that credit card companies would feel more inclined to loosen their rigid stance, in turn accepting more gambling transactions to regulated sites.
Should the passage of the New Jersey bill increase the security level of credit card companies and their affiliated bank, it could conceivably facilitate the growth of the industry. But if it doesn’t, than it may actually make it more difficult for players to transfer funds onto a site.
Situation in New Jersey nearing critical
On May 17th, 7-day cash-game averages across all New Jersey based poker sites hit their lowest point since early-December, when the market was only two weeks old.
One-off events like the WSOP.com Online Championship series may help to propel New Jersey’s poker operators out of the muck temporarily, but in order to remain viable over the long-term it is imperative that they continue to address the most pressing issues plaguing the user experience.