Do I have to honor a credit card charge to an online casino?

I shouldn’t have done this, but I deposited funds using my credit card into an online sportsbook/casino. I won money in the casino placing small bets. As soon as I upped my bets, I lost. I tried this several times and it happened every time.

I did some research on the Internet about this particular online sportsbook/casino and found many complaints about them, including cheating software and nonpayments to winners.

I decided to dispute the charge, since I felt there would be no way to get my money back, even if I won. I got the charge credited back to my account by my credit card company.

This online casino is now harassing me with phone calls and threats. They said they would get a collection agency after me. I told them to do so, since I am tired of listening to their threats.

Can they do this? Do they have any legal rights? The charge on my credit card description reads that I made a clothing purchase from Dubai, which is a lie.

I am a U.S. citizen, which I believe online sportsbooks/casinos aren’t suppose to allow us to use their services to begin with.

Could they send a collection agency after me? Their entire business is illegal in the U.S., as far as I know, but I’m not totally sure.

Please let me know what I can do, if anything.

Thank You!

2 Responses to “Do I have to honor a credit card charge to an online casino?”

  1. I would not worry about them coming after you, they should be afraid of you going after them. They violated the law, not you. Here is a brief on the Federal Law.

    The Unlawful Internet Gambling Enforcement Act of 2006 (the “Act”) enacted into law at 10 a.m. ET on Friday October 13, 2006. The Act adds the following provisions to the money and finance provisions of Title 31 of the United States Code

    5361. Congressional findings and purpose
    5362. Definitions
    5363. Prohibition on acceptance of any financial instrument for unlawful Internet gambling
    5364. Policies and procedures to identify and prevent restricted transactions
    5365. Civil remedies
    5366. Criminal penalties
    5367. Circumventions prohibited

    Section 5363 bans and and Section 5366 criminalizes the acceptance of funds from bettors by operators of most online gambling Websites. The operators affected are those who:

    (1) being engaged in the business of betting or wagering
    (2) knowingly accept

    (3) proceeds from credit cards, electronic fund transfers and checks
    (4) in connection with with the participation of a bettor

    (5) in unlawful Internet gambling, which is the sponsorship of online gambling that violates any other federal or state anti-gambling law..

    The ban and criminal provisions become effective immediately on enactment.

    Mere participation in online betting or wagering is not banned or criminalized by the Act.

    Hope this answer is of help to you
    LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice

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  2. April 22, 2010 at 9:28 pm

    Don’t sweat it.

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