Wednesday, May 30, 2018

Something to think about! As Gambling Expands, FIs Have A Decision To Make

WASHINGTON—For U.S. states ready to legalize gambling, banks hold many of the cards.

The Supreme Court recently ruled that states can allow betting on individual sporting events, but gamblers who want to place those wagers using a credit card face a major hurdle: The largest U.S. issuers, including JPMorgan Chase, Citigroup, and American Express, don't yet allow their cards to be used for sports gambling, reported Bloomberg.

“The stakes are huge. Americans illegally bet an estimated $150 billion on sports games each year, a figure that's enticing for credit-card issuers looking to gin up extra spending by their customers. Still, allowing cardholders to fund their gambling habit with a credit card could create problems for lenders, which are left on the hook if a borrower can't repay,” Bloomberg said.


Time to review your policy?






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