Why is Firepay banning Canadian online gambling transactions?

17.02.2007

Canadian online gamblers who use the FirePay e-wallet will be scrambling to mobilise their funds following a surprise notification from the company just before the weekend.

The online payments processor has now extended its ban on US online gambling transactions to Canadian consumers, according to an on-site notice this week.

The notice reads:

"Effective February 21, 2007, FirePay www.firepay.com will no longer allow Canadian consumer payments to online gambling merchants.

"Effective February 28, 2007, FirePay www.firepay.com will no longer allow Canadian consumers to receive payments from online gambling merchants."

Unlike their US counterparts, who are having serious difficulties in retrieving monies from e-wallets as a result of US Department of Justice activities, Canadian Firepay account holders will at least have time and alternative channels to withdraw their account balances. The notice includes guidance on non-gambling exit options:

"All Canadian FirePay account holders will continue to be able to make purchases and receive payments from non-gambling online merchants, as well as to "Deposit From" and "Withdraw To" their Canadian bank account.

"Click here for a listing of non-gambling merchants that accept FirePay: http://www.firepay.com/_stores/default.asp

"For any questions regarding these deadlines or this policy, please email info@firepay.com."

Although online poker sites like Poker Stars ceased accepting US player deposits from FirePay last October 13, these sites will now find Canadian players lost to them from the FirePay route as well. InfoPowa will issue further bulletins as more detail becomes available.

FirePay is a subsidiary of Optimal Group Inc., a NASDAQ-listed company with over $6.5 billion in worldwide processing annually.