The gaming industry has been one of the largest segments of ecommerce traffic since its inception in the late 1990's with no signs of slowing down anytime soon. With 2016 estimates showing about $45 billion in revenue, and 2018 projections placing it at about $56 billion, the gaming merchant account services industry is still a rapidly growing segment of the ecommerce landscape.
Merchants operating in the gambling industry do face some obstacles when it does come to establish high risk credit card processing services for their company. Many countries have taken steps to make gambling online illegal; by eliminating the ability for merchants to accept or send payments, creating a sort of illegal market for the industry to operate within. In such places as the United States, individual States have begun regulating and legalizing online gambling within their borders, but this does not always make it easy for businesses to operate.
There are 2 types of gaming merchant accounts that payment processors can use, coded and non coded accounts. Every merchant is assigned a merchant category code (MCC) depending on the type of business they are operating. Merchants that are operating licensed gaming companies or websites will generally be set up as being a Coded gaming service, using the MCC code of 7995, that is used by providers for games and other such activities.
Merchants that operate using a gaming merchant account put the payment processor and banks at risk for significant fines. Many times, these merchants can be fraudulent or laundering money, more reasons that banks and payment processors not providing thorough background checks or not willing the take the risk avoid gambling altogether.
The online gambling industry is a thriving and continual growth industry that will continue to have banks and other payment organizations looking to increase the number of gaming merchant account clients in their portfolios.