UIGEA Enforcement - NH LOTTERY BLOCKED - Forum 2.0

OK, NH is NOT happy, based on UIGEA Visa / Master Card is blocked for online ticket sales costing NH aboubt a MILLION a year! Too funny, these states Atty. Gens. were in favor of the UIGEA. As my mother always said, be careful what you ask for...... Full story: http://www.unionleader.com/article.aspx?headline=NH+Lottery%3a+Sales+blocked%2c+law+blamed&articleId=1facf49e-c378-4450-8ae8-ff36e46718ac NH Lottery: Sales blocked, law blamed By DAN TUOHY New Hampshire Union Leader 15 hours, 40 minutes ago The New Hampshire Lottery Commission reports that major credit cards are blocking some online subscription ticket sales. "We could end up losing some significant revenue from this," Executive Director Rick Wisler said. "It can amount to a million dollars a year or more to the Lottery if credit cards are not allowed." The problem is isolated to credit and debit card purchases of the popular Powerball and Tri-State Megabucks lottery game subscriptions, which players can buy through the state's Web site: NHLottery.com. Wisler said people can pay for a subscription by check or money order, and they can still use their cards to buy tickets at retail locations. He said the problem arose when Visa and MasterCard changed the Lottery's merchant code from "government service" to "betting, casino and gaming." The change, made late in 2008, was a result of a new federal law, the Unlawful Internet Gambling Enforcement Act of 2006, Wisler said. The law was intended to carve out an exception for legalized gaming, such as a state lottery. Instead, the New Hampshire Lottery has become a lawful enterprise caught in the cross-hairs of over-regulation, according to Wisler. Under review After recent talks with Visa and MasterCard, Wisler said the credit card giants said they would take the state's concerns are under review. In response to a reporter's inquiry, Visa Inc. issued a statement: "Visa requires its financial institutions worldwide to ensure that their gambling merchants -- including lottery tickets, casino gaming chips, off-track betting and wagers at race tracks -- identify their transactions as gambling transactions when they are submitted through the Visa system for authorization by the cardholder's financial institution. This identification requirement enables our issuing financial institutions to block properly coded Internet gambling transactions where prohibited." Calls to MasterCard for comment were not returned. While the major credit cards deny some of the online sales, those accepted may be assessed a fee by the bank handling the transaction, according to Wisler. His office is fielding such complaints. "We don't know how many subscribers may have been charged additional fees by their banks," he said. Unclear language Before the enforcement act became law, the American Bankers Association was among numerous organizations calling its language ambiguous or overly broad. The gambling provisions were part of a bill covering port security. About a year ago, then U.S. Sen. John E. Sununu, R-NH, co-wrote a letter to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, asking them to try to clear up "sufficient ambiguity as to what sort of transactions are to be blocked." Sununu, with former Sen. Pete Domenici, R-NM, expressed concern that "risk-averse financial institutions will simply choose to block every transaction that may be interpreted or could resemble gambling, whether legal or not." The Interactive Media Entertainment and Gaming Association, based in Washington, D.C., is taking the federal government to court to get the new law thrown out on the grounds that it is unconstitutional. The association's attorneys argue that Congress failed to provide a precise definition for unlawful Internet gambling. Wisler said New Hampshire will pursue all options for recourse, including legal action and working with the state's congressional delegation for a legislative fix. One more roadblock By one news account, the New Hampshire Lottery Commission's revenues were down about $12 million in the last six months of 2008. "It's definitely not helping us," Wisler said of the Visa/MasterCard code change. "It's just one more roadblock that is being put up to prevent us from meeting our sales goals." Online subscriptions have proven popular in New Hampshire. Wisler said the New Hampshire Lottery Commission has even discussed adding additional games for subscription, "Hot Lotto" being one of them. With a subscription, players are eligible for every drawing for a period of time: 26 draws, 52 draws or 104 draws. A New Hampshire mailing address is required and one must be at least 18 to buy tickets. Tri-State Megabucks has about 8,200 subscribers and Powerball has about 7,500 subscribers, according to Wisler. The New Hampshire Lottery Commission's annual financial report indicates the potential is much greater; it recorded about 25,000 in total subscriptions in fiscal year 2005, the year Powerball subscriptions began. obg

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