Internet Gambling and You

With the dramatic increase in Internet-based wagering, Congress has acted to ensure that illegal internet gambling is thwarted, and has enlisted banks to assist in this effort. Congress concluded that new mechanisms for enforcing gambling laws on the internet were necessary because traditional law enforcement mechanisms are often inadequate for enforcing gambling prohibitions or regulations on the internet, especially when it crosses state or national borders. Here’s what you should know:

What Banks Must Do

Banks must have policies and procedures to block transactions that finance internet gambling by credit and debit cards.

Banks must screen commercial customers at the time of an account opening to establish the level of risk that the new account holder might pose for participating in restricted activities.

When a bank receives a report from a law enforcement or regulatory agency that an account is processing restricted transactions, the bank must first determine whether the transactions are legal or illegal, and if illegal, take appropriate actions (such as closing the account or restricting access to certain payment systems, for example).

Finally, banks are required to notify their commercial customers that illegal internet gambling transactions are prohibited and cannot be processed through the bank.

What Banks Are Permitted to Do

Many banks, including FGBC, have decided to block all legal and illegal internet gambling transactions. However, transactions at a legal gambling house are not affected.

What You Should Do

Individuals and businesses should never participate in illegal gambling activities of any kind. Just as important is to know which activities are lawful and permitted, and which are not. There are a myriad of Federal, State and Tribal laws prohibiting or regulating gambling, and you should be knowledgeable about those that affect your particular activities.