Stopping remote gambling EGBA’s Responsible Gaming Day Brussels February 17, 2009.
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Transcript of Stopping remote gambling EGBA’s Responsible Gaming Day Brussels February 17, 2009.
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!!”
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
Financial transactions
Deposit €100Bank transfer
Customer
Merchant
Issuer (Bank)
Deposit €100Credit/Debit card
Deposit €100eWallet
Customer’s bank
Electronic Funds TransferHow does bank know merchant =
gambling site?Government tells it – how and how does
government know?Bank finds match but that is the startCost – manual intervention – VERY costly
Deposit €100Bank transfer
Customer
Merchant
What can be done
Gambling transactions (7995)
1. Deposit €100Credit card
Payment ServiceProvider (PSP)Merchant Acquirer
(Bank)
Customer Merchant
2. Customer wants
to deposit €100
by credit card (7995)
3. My merchant (7995) wants
€100 from customer
4. Refused
5. Sorry, refused6. Sorry, refused
Issuer (Bank)
and it is a CNP
transaction
How to thwart it
Gambling transactions (not 7995)
1. Deposit €100Credit card
Payment ServiceProvider (PSP) /Merchant Acquirer
(Bank)
Customer Merchant
2. Customer wants
to deposit €100
by credit card
3. My merchant (NOT 7995)
wants €100 from customer
4. OK (Customer has credit)
5. Got the money6. Account + €100
Issuer (Bank)
What can be done• 7995 transactions rejected means:
Is it 7995?
Is it CNP?
Merchant ID = nn?
• Requires extra processing by issuer
Yes
No
No
Yes
Accept
Reject
Yes
No
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.
How to thwart iteWallet transactions (6012)
eWallet’s bank
Customer
eWallet
3. Give OLPkr €75for customer x
4. Done
5. €75 in account
OLPkr’s bank
1. I want to useeWallet to deposit€75
€75 customer xOLPkr
OLPkr
2. Transfer €75to OLPkr
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”
Result• Suspicions• Hostility• Regulate• Bring pressure to bear to raise
standards• Customers see benefits of
regulation