Archive for September, 2010

Is It Illegal Using the Credit Card for Online Gambling?

Date Monday, 27 September 2010  Posted in Category Computer Resources  Tags ,   Comment No Comments »

Is It Illegal Using the Credit Card for Online Gambling?

One of my friend asked me the above question and if my answer to him is ‘yes’, then he would like to know what’s the best way to avoid going against the law.

First, to answer his question- is it illegal using the credit card for online gambling?

For Malaysian, the answer is yes- it is illegal. You can refer to your credit card issuing bank’s terms and conditions. There’s a statement in T&C section mentioned like this:
Any card issued to me / us shall not be used by me / us for any unlawful activity or purpose (including without limitation online gambling), whether in whole or part.

Solution to avoid going against the law

I have asked him for the gamble website address to further study and research in order to provide him the right answer and found that there’s a way gambler can ‘deposit’ money into the gamble account from the credit card without going against the banking T&C. The gamble website normally accept third parties e-money/e-wallet such as Click2Pay and Neteller.com. We called these third parties ‘payment gateway service providers’, what a gambler can do is to deposit the fund into the gambling website via these third parties. Of course, there will be a percentage of transaction fee charges that needs to be paid from 3% to 5%.

Problem withdrawing the money that you won

Credit card does not accept fund deposit. Alternatively, the gambler can withdraw the money through a few way:
- Cheque
- Transfer to your bank (bank, account, name and etc are required to be provided)
- WesternUnion

Well, with the convenience of Western Union, the advantage is that people can withdraw the money earned from the Internet (such as trading and blog ads); the disadvantage is that an easy way for money laundering.

Bottom line

Gambling is not good for life, getting addicted to this game can cause a lot of bad effects. With the convinience of Internet, people can sit right in front the computer losing thousand of dollars.