Which UK Bank Account for Online Gambling / Lottery Business?

[tattysilver]

As the title suggests I have recently been involved in a new company planning on opening an online lottery business. We have applied for a licence and prize indemnity insurance, but are having trouble opening a business bank account due to the "nature of the business".

Barclays and Lloyds have knocked us back so far; neither were able to provide a suitable reason but they just simply don't want to offer an account for gambling-related businesses. Both stated that it isn't an issue with risk (our expected net profit is around 50% and it is a very low risk business with insurance), nor is it a moral issue (a significant % of revenue is donated to good causes). They simply won't tell me the reason.

Before we try any more banks I'd like to know if anyone has any suggestions or experience with this in the past? I have started a handful of other companies before but never been knocked back for a bank account. A merchant account, of course - but never a standard bank account.

Any suggestions would be greatly appreciated.

ts

 

[Nick_W]

I faced with the same problem, all European banks refuse to open a bank account for gambling business.
What decision I found is to open an account in offshore. As far as I know some Cypriot banks can open an account for gambling business, but I'm not sure about company (whether it has to be Cypriot company also or not).

hope it hepls.

Maybe you find another decision, it would be great to hear from you.

 

[tattysilver]

Thanks for the information.

Unfortunately we have now been declined from two further UK-based banks. We are being brutally honest about the nature of our business on application, as we do not want to be stung somewhere down the line when business is good.

Is a non-European account really the only option? There are tens of thousands of gambling-related companies in the UK - surely they can't all have offshore accounts?

Nick, who do/did you bank with for your gambling business?

ts

 

[Restless]

I'm facing the same problem - difficulty getting a standard business bank account for an online gambling business in the UK.

Actually, my business is legally classed as a prize competition, not gambling, but still the same problem.

Did you find an account in the end tattysilver?

 

[ddjanahan]

Restless:

I'm facing the same problem - difficulty getting a standard business bank account for an online gambling business in the UK. Actually, my business is legally classed as a prize competition, not gambling, but still the same problem.

I am in the same position, my business is a prize competition but banks are being really difficult about supporting my business. Do you have any alternatives or have you progessed since last posting? If i get anywhere i will let you know

Cheers

 

[Restless]

Ddjanahan:

No, still no luck.

I think the high street banks are no go. I'm going to start looking into smaller UK banks and then maybe foreign banks...

Will let you know if something turns up.

 

[Paulgraham123]

Dear Friends.

More bank accounts tied to online gambling payments have been seized by the US government.

Thanks

 

[mr. mischief]

Try unusual banks such as Handelsbanken. It could be that the banks are worried about the implications of the Wire Act. When this came into effect I was a semi-pro gambler and it significantly reduced my profits.

Perhaps if you can make it clear you'e thought about the Wire Act and can show there is no way you are in breech, this may help with the next few banks.

 

[wizzard]

Dear Friends.

More bank accounts tied to online gambling payments have been seized by the US government.

Thanks

Where does it say in the original post that he's from the US?

Restless - it would have been better to start a new thread as there was at least an 18 month gap between yours and the OP.

 

[Restless]

Thanks for the replies.

I'm from the UK. Entries from the US will be blocked.

I've tried Handelsbanken but they do not deal with new startups. Does anyone know of any other small, foreign/unusual banks like this who trade in the UK?

(Wizzard - is it worth starting this in a new thread now? I'm not used to forums.)

 

[wizzard]

Thanks for the replies.

I'm from the UK. Entries from the US will be blocked.

I've tried Handelsbanken but they do not deal with new startups. Does anyone know of any other small, foreign/unusual banks like this who trade in the UK?

(Wizzard - is it worth starting this in a new thread now? I'm not used to forums.)

I wouldn't think it would be worth starting a new thread now with the amount of replies.

 

[FastOffshore]

There are a variety of banks in Europe and abroad that will accept e-gaming business.

 

[PayPoint net]

Hi

Yes although many banks perceive e-gaming to be high risk you do have a number of options. The good news is that there are some acquiring banks that are a lot more flexible with the types of business sectors they support. Merchant account comparison sites such as Paymentbrain.co.uk has a section on merchant account providers as well as high risk merchant account providers (including the list of sectors they support) - you can also compare on price etc.

We work with a number of acquirers that support a wide range of businesses - happy to discuss your options if this is of interest?

Best of luck
Siobhan

 

[joshef]

Either you try for any offshore banks which allow you to open your account for gambling business or as there are many gambling industries and online betting sites, so you can take suggestion from their owners.

 

[Khaled.A]

As far as I've seen, a lot of what are termed "high risk" merchants like, gaming, pharma, adult, etc. are using Gibraltar as a base. Even the like of Ladbrokes is licensed and regulated in Gibraltar. Perhaps that is a viable route to start looking into?

HTH