Mastercard lobbying for regulated internet gambling

This is interesting.

According to a report from the Associated Press at least part of Mastercard’s Q1 2010 lobbying efforts were directed toward the cause of a regulated online gambling market in the US.

From January to March 2010 the credit card company spent $820,000 lobbying both houses of Congress on a number of issues that included regulation of online gambling.  They joined the likes of the American Gaming Association ($430,000) and member Harrah’s ($905,515) as significant Q1 lobbyists for legalized online gambling.

That US based gambling organizations are now pushing hard for the right to enter the market is understandable – they want a piece of the net gambling pie. But the fact that Mastercard are throwing their weight behind the cause shows exactly how much this debate means to them as well.

Merchant service fees on the billions of dollars in deposits with online casinos, sportbooks and poker rooms is no doubt a large part of their motivation.  But the administrative cost that they face in complying with UIGEA is probably also something they’re concerned about.

Back in February Mastercard surprised the industry with the decision to block US player online gambling transactions months before UIGEA’s implementation.  So at the same time that they were lobbying hard for the right to continue processing I-gaming transactions, they voluntarily pulled the pin on them.  This might seem a slightly conflicted stance at first.  But the road to eventually getting your way on Capitol Hill, and indeed with governments around the world necessitates being a good corporate citizen.

Just as PartyGaming settled with the Justice Department last year, and Unibet and 888.com closed the door to French players in hopes of gaining licenses there, perhaps Mastercard are making all the right moves in the eyes of the authorities with a view to a longer term end game?