Hi,

I have a question about something thats been bothering me forever!

Do Online Casinos hold banking licenses?

If they accept deposits into accounts (for use at a later stage) from various users surely that classifies them as a bank under banking regulation?

When someone transfers funds does the money go into their (the online casino) bank account/merchant account or is it held "Virtually" until its used?

And when money is spent in an online casino what is the flow?
Does it physically change hands or once funds are deposited is the rest just figures seen on a screen?

Basically just interested to know where funds travel to/from in a typical online gambling transaction....absolutely kills me not knowing this

hmmm been asking everywhere & everyone....can nobody help

From what I under stand in most cases it is considered the same way a 'point' system is. If you buy $1, then you're getting 1 point, or whatever they use. So really you are buying points with their site and spending them how you want. If you end up with a lot of points and want to 'cash out' then they pay you what they've decided the points are worth. In this way they skip over banking laws.

I can't verify this, but that's what seems to be happening after examining some of the inner workings.

Originally Posted by NaughtyGirl

From what I under stand in most cases it is considered the same way a 'point' system is. If you buy $1, then you're getting 1 point, or whatever they use. So really you are buying points with their site and spending them how you want. If you end up with a lot of points and want to 'cash out' then they pay you what they've decided the points are worth. In this way they skip over banking laws.

I can't verify this, but that's what seems to be happening after examining some of the inner workings.

They'd have to do it this way if they're in the US, I believe online casinos are illegal in a lot of states?

There are a lot of banks who won't let you use a merchant account for online gambling.