1 / 13

Stopping remote gambling

Learn how banks can prevent online gambling transactions, protect customers, and uphold legal obligations. Explore the complexities of identifying gambling sites and the challenges in transaction processing. Discover the importance of regulatory compliance and the potential consequences of enabling such transactions. Take action to ensure responsible gaming practices are upheld.

jdickson
Download Presentation

Stopping remote gambling

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Stopping remote gambling EGBA’s Responsible Gaming Day Brussels February 17, 2009

  2. Let’s stop people gambling • Tell them not to • Tell the remote sites to stop advertising • Tell the Internet Service Providers to stop allowing the sites into the country • Tell the financial institutions: “DON’T!!”

  3. Strangle the sites • Banks: do not process transactions • Customers are not allowed to deposit money or accept winnings • If the bank allows transactions it is liable • What should the bank DO? • Carry out its legal obligations

  4. Financial transactions Merchant Customer Deposit €100 Bank transfer Customer’s bank Deposit €100 Credit/Debit card Issuer (Bank) Deposit €100 eWallet

  5. Electronic Funds Transfer How does bank know merchant = gambling site? Government tells it – how and how does government know? Bank finds match but that is the start Cost – manual intervention – VERY costly Merchant Customer Deposit €100 Bank transfer

  6. What can be done Gambling transactions (7995) Payment ServiceProvider (PSP)Merchant Acquirer (Bank) Customer Merchant 6. Sorry, refused 5. Sorry, refused 1. Deposit €100 Credit card 2. Customer wants to deposit €100 by credit card (7995) Issuer (Bank) 3. My merchant (7995) wants €100 from customer and it is a CNP transaction 4. Refused

  7. How to thwart it Gambling transactions (not 7995) Payment ServiceProvider (PSP) /Merchant Acquirer (Bank) Customer Merchant 6. Account + €100 5. Got the money 1. Deposit €100 Credit card 2. Customer wants to deposit €100 by credit card Issuer (Bank) 3. My merchant (NOT 7995) wants €100 from customer 4. OK (Customer has credit)

  8. What can be done • 7995 transactions rejected means: Is it 7995? Is it CNP? Merchant ID = nn? • Requires extra processing by issuer No Yes No Yes Yes No Accept Reject

  9. PrePaid, eWallets etc. • Can be used for many purposes so cannot stop transactions to them. • Only they know how the money is spent. • They transfer money back to me.

  10. How to thwart it eWallet transactions (6012) eWallet’s bank OLPkr Customer 5. €75 in account 3. Give OLPkr €75for customer x 1. I want to useeWallet to deposit€75 €75 customer xOLPkr 4. Done OLPkr’s bank 2. Transfer €75to OLPkr eWallet

  11. Result • Companies will alter codes • People will use other methods of payment • People will be driven to less scrupulous companies/jurisdictions • Jurisdictions will fight “discrimination”

  12. Result • Suspicions • Hostility • Regulate • Bring pressure to bear to raise standards • Customers see benefits of regulation

  13. The End Robert.dias@iigc.co.uk +44 (0)7968 854016

More Related