Processors

[onlineslotmachines]

This might sound like a dumb question, but I need some information about "processors" at online casinos. What exactly is a processor? If an online casino is having problems with their processor, just what does this mean?

Are the casinos paying us through their processors? Just how is the money sent to Neteller or sent to an affiliate through wire transfer?

Thanks for any input.

 

[casdir]

From what I know, online casinos use third party companies to process payments and transactions. An example of a processor is Click2Pay. Once the processors pay the casinos (minus their fee), then the casinos send money to their affiliates.

If a casino is having problems with a processor, its usually due to legal reasons e.g. the issue of what happened to QuickTender.

Hope this helps

 

[Vladi]

Yes the processor is an intermediary that handles payments to and from players. If you are talking about processor problems then you are usually referring to ones that deal with American players.

The problems arise because usually they must do something to disguise the fact that they are processing gambling transactions. The processor will usually hold the money received from players before forwarding it to the casinos for several months at a time in order to ensure the payments come through. However this lag leaves the casinos with big problems if the processor is shut down or disappears and runs away with the money, especially if the casino has been paying winners without having received the deposited money first. Then its a double whammy for the casino.

I think this extremely slow cash cycle is a major reason why so many of the US-facing casinos and poker rooms are such slow payers now, and often pay in tiny instalments over a long period of time (aside from the rogue ones that have always done it that way). After all the casino can't exactly go to authorities for help in retrieving money from a defunct processor that was earned from American players.