Credit Card Providers Now at Forefront of Florida War With Offshore Casinos
Florida is taking its battle with offshore casinos to the next level by clamping down on credit card payments.
The Florida state attorney general is ordering companies, including Visa and Mastercard, to stop accepting payments to offshore gambling sites.
James Uthmeier accused the global payment providers of violating state law in a series of cease-and-desist letters. It’s part of a wider crackdown on offshore gambling sites that accept customers in the Sunshine State.
At a Glance:
- Florida attorney general issues warnings to Visa, Mastercard, and AMEX
- Visa comes under particular scrutiny for processing offshore payments
- Move aimed to protect Seminole Tribe, which enjoys exclusive gambling rights
- Florida has no online casinos and limited mobile sports betting
Florida’s battle against unlicensed gambling operators
The Florida attorney general’s office issued a public letter, rebuking the payment giants for facilitating “illegal gambling.”
“Payment processors such as Visa, Mastercard, and American Express undermine Florida law by facilitating transactions for foreign-owned illegal online gaming,” the letter read.
“Today, they’re receiving a cease and desist. My office will take appropriate legal action if these transactions continue.”
While online casinos are banned in Florida, it’s still possible to access offshore gambling sites from within the state. Many global payment providers, including Visa and Mastercard, process deposits and withdrawals to offshore gambling sites.
Additionally, Visa was given a June 24 deadline to provide evidence it was taking “corrective measures” to stop processing such payments.
Florida gaming on the rise
Currently, online gambling in Florida is restricted to sports betting and the lottery. There are legalized online sportsbooks, but the industry is monopolized by the Seminole Tribe. The tribe also runs Florida’s handful of brick-and-mortar casinos and cardrooms.
Unregulated gambling sites continue to flourish in Florida and accept payments. Some offshore casinos and sportsbooks also take cryptocurrency payments for even more anonymity.
In February, Florida House Bill 189 cleared its final review and would provide the biggest oversight of gambling in the state to date.
The bill has an overreaching remit on online gambling, even including sweepstakes casinos as potential targets for criminal penalties.
Crackdown spreads to illegal slot parlors
Florida has tight control over regulated casino gambling in the state. It’s been getting tighter as unauthorized gaming machines spread across the state.
A major raid earlier this month saw nearly 500 illegal slot machines seized in one day. Illegal gambling machines take funds away from the state, argues the attorney general.
According to recent reports, the Florida Gaming Control Commission seized over $14 million in illicit profits from illegal machines.
