Cantor Gaming now accepting credit, debit cards for wagering

Cantor Gaming, which operates seven race and sports books in Las Vegas, has become the first and so-far only such operation to accept credit and debit cards to fund wagering accounts, a company executive said Tuesday.

The move is seen as an inevitable step toward a cashless society even when laying a bet.

The change, already approved by gaming regulators, coincided with the March 15 tipoff of the NCAA Tournament.

Mike Colbert, risk director at Cantor Gaming, said the gaming company saw "quite a few credit cards used to open accounts during the first weekend of March Madness."

Colbert said credit and debit cards could only be used to "fund an account," not to pay for individual race or sports bets. The process is similar to getting a cash advance on a credit card from a bank and transferring the money into an account.

Colbert said if your card has a $10,000 credit limit, and you want to open an account with $6,000, Cantor will do it. He said there was no minimum to open an account.

"It's a convenience for our customers ... because a lot of people don't have a lot of cash on hand," Colbert said. "I think accepting credit and debit cards will increase the handle and our business."

Visa, MasterCard and Discover cards are accepted, American Express is not.

"I see it more as an evolution of the gaming business," said David G, Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas. "You can already use your credit card to get a cash advance at a casino."

Schwartz said in a society that is moving away from cash in general, the next step for the gaming industry is to offer slot machines and other games that accept credit and debit cards. He said the casino industry has trailed society at large when it comes to accepting credit cards.

"The technology has been around for about 20 years," Schwartz said. "It's political consideration that has kept it from going forward. People have been hesitant to allow slot machines to accept credit cards."

Schwartz said it might take five, 10 or even 20 years but the gaming industry will be cashless.

Betting with a credit or debit card may be more convenient for most gamblers, but it may cause additional problems for those addicted to gambling, said Carol O'Hare, executive director of the Nevada Counsel on Problem Gaming.

"The real danger is you are making the decision easier for at-risk people," O'Hare said.

O'Hare said she understands use of credit and debit cards is part of the evolution of the industry, but she warns that cashless wagering means fewer immediate consequences as a result of placing a bet. She said losing a $20 bill has more immediate impact than seeing a charge on a statement at a later date.

Matthew Holt, director of race and sports data at Cantor Gaming, declined to discuss the methods the company uses to monitor potential problems with customers. Holt said gamblers have been using credit cards to bet on sports for 10 years on offshore and illegal websites.

Holt said that same person who was using a credit card to bet online with an "illegal and unreliable place," is now betting on sports with a "licensed, legal and ethical company."

"We have a lot more safeguards," Holt said.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.