Big Banks Refuse to Process Legal Online Gambling Transactions
Players in legal online gambling states are facing growing difficulties when trying to fund their accounts. Major U.S. banks
The problem traces back to the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), which restricts financial institutions from handling gambling-related payments. Even in states where online gambling is fully legalâsuch as Nevada, Delaware, and New Jerseyâbanks have maintained a cautious stance since the mid-2010s.
Wells Fargo has explicitly cited the UIGEA as its reason for declining deposits. Meanwhile, American Express and J.P. Morgan Chase point to high credit losses and frequent customer disputes linked to gambling transactions. Visa and Mastercard have also joined the list of institutions refusing to process these payments. For players, this creates frustration. Many must now rely on workarounds like e-checks, wire transfers, or cashing out at physical casinos. The online gambling industry itself admits the situation is far from ideal, calling it a new sector with persistent challenges. Despite legalisation in some states, banks continue treating gambling transactions as high-risk. Their policies show no signs of easing, leaving players and operators searching for alternative solutions.
The refusal by major banks to process gambling payments leaves legal operators and customers in a difficult position. Workarounds exist, but they add extra steps and inconvenience. For now, the industry must navigate a financial landscape shaped by both outdated regulations and institutional caution.
