Online Payments. Evolved.

Merchant Application: Gambling Policy

1. Definition

   An online gambling provider is a merchant that offers participation in gambling activities (particularly betting and casino games) or lottery games via Internet. This also concerns gambling and/or lottery games being run by a third party.

2. Unlawful Internet Gambling Enforcement Act Policy

   On 13 October 2006 the USA enacted the “Unlawful Internet Gambling Enforcement Act” (the “Act”) to support the fight against illegal online gambling. The new law prohibits betting companies from knowingly accepting any proceeds from financial transactions related to Internet gambling. The US law, as well as individual state regulations, find such activity unlawful. PayLane Limited remains in full compliance with the abovementioned Act.

3. MasterCard gambling regulations

   Please note that MasterCard defined additional requirements concerning gambling and gaming merchants’ payment processing. The regulations are based on section 2.5.4 of the MasterCard Chargeback Guide:

   Internet casino card acceptors must not sell chips or other value that can be used, directly or indirectly, to gamble other than at a merchant that sells such chips or other value […].

   MasterCard interprets the rules as follows: If the parent company is MasterCard’s merchant, chips or other assets may be used to gamble at the merchant and its wholly owned subsidiaries. Chips or other value may not be purchased at one company and used at any other entity, including sister companies of the MasterCard’s merchant.

   According to the above mentioned MasterCard regulations, all gambling / gaming entities must be 100% merchant's subsidiaries. If the merchant provides chips or other value to gambling / gaming entities (e.g. casinos), these companies must be 100% owned by the merchant. Otherwise, the chips cannot be used in the gambling / gaming portal.

   Should any doubt or contradiction arise, the rules defined by MasterCard shall prevail.

4. Required documents

   • Copies of the regulatory permission / license required in the country where the online gambling provider’s registered office is located (if applicable).*
   • Copies of the regulatory permissions required in the countries where the online gambling provider intends to offer the services (if applicable).
   • Online gambling provider’s confirmation in writing, stating that they do not offer unlawful Internet gambling activities and will monitor this requirement using reasonable security measures.
   • Confirmation (by fax, on merchant’s stationery signed by the Director / Secretary) stating that the casino and the website are wholly owned and operated by the merchant.

* Please note that as far as Cyprus is concerned, according to the current jurisdiction, no gambling license is required. However, PayLane shall bear no responsibility in case of any change in the local regulations.

PayLane reserves the right to accept an online gambling provider only should additional fraud screening tools and/or turnover limitation be implemented.

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