Skrill, an online payment system, is the first to accept online gambling transactions in New Jersey and its CEO expects payment options in the state to improve—gradually.
Speaking to the Online Poker Report website, Neil Steinhardt said Skrill can’t be used to circumvent reluctant credit card issuers and also that he feels the New Jersey market can handle only three online poker rooms, among other topics.
Here’s a look at his comments in a wide-ranging interview.
“In today’s regulated environment in New Jersey, we are the only digital wallet available, and therefore, the only instant method for paying in and getting paid out,” he told the website. “If customers want to manage their playing funds independently and enjoy the flexibility of sending money to any poker site with just one click, we are their only option.”
Steinhardt also said that players can’t get around credit card blocks by depositing to Skrill.
“Skrill is a part of the same evolving payment ecosystem that the operators work in, not a way to work around it,” he said. “We work with our acquiring bank and with the credit card brands to ensure that credit card transactions are properly coded. Clearly there are some education opportunities for a number of issuing banks. I suspect that this situation will get better over time.”
Steinhardt also commented on what needs to improve in New Jersey.
“First, banks need to be educated on this situation,” he said. “Too many banks do not recognize the emergence of regulated gaming and have a blanket no-gaming policy. Second, I’m not sure if there is enough liquidity in a small state like New Jersey, but should a larger state like California legalize online gaming then there would be many more millions of customers looking to make deposits. The banks would take more notice.
“Third is time. I think a lot of banks are taking a ‘wait and see’ approach, “he said.
Finally, Steinhardt estimated that the state can support three online poker sites.
“Without PokerStars for two years, I believe three networks maximum, with one of them taking 40-50% share,” he said.
PokerStars recently had its application for a New Jersey online gaming license suspended for two years.
