Consumer Payment Card News

Online Gambling

The New York Attorney General announced last week that ten additional banks have signed agreements to block cardholders from using their credit cards for transactions identified as online gambling. The initiative began in June of 2002 when the Attorney General obtained Citibank’s agreement to block such transactions. The ten new banks have agreed to block these transactions, and have agreed to pay a combined total of $335,000 in costs to New York State. Among the ten banks announced this week: OR-based First Consumers National Bank; SD-based First Premier Bank; UT-based Merrick Bank; CT-based Peoples Bank; TX-based USAA Federal Savings Bank; US Bank; and Wells Fargo. Meanwhile, a Tennessee a state committee passed an amendment this week to ban the purchase of lottery tickets with a credit card. The Tennessee lottery implementation committee, made up of members from both the House and Senate, voted to remove language that would have permitted charging lottery tickets. A amendment had been attached to the lottery legislation that required consumers to buy at least $10 in other retail goods to be eligible to charge a lottery ticket. Members of the committee noted the rising number of bankruptcy filings. Bankruptcies in Tennessee are up about 7% this year.

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