3624 Lady luck hotel and casino

Introduction

• What it is: This MCC represents establishments that offer casino and gaming services, often within a hotel context.
• Risk level: High — Associated with significant chargeback and fraud risk.
• Acceptance difficulty: Very High — Payment processors often impose stringent requirements due to the industry's risk profile.
• Typical business models: casinos; gaming hotels; poker rooms; electronic gaming establishments.
• For merchants: Expect higher merchant discount rates (MDR); larger reserves may be required; regulatory approvals can prolong onboarding.
• What PSPs expect: Comprehensive business documentation; proof of gaming licenses; detailed information about gaming offerings and operations.

Payment Insights & Benchmarks

Merchants in the "Lady Luck Hotel and Casino" category should prepare for unique payment dynamics that can include higher friction and fluctuating customer behavior. Acceptance of various payment methods is often influenced by regulatory environments and the nature of gambling transactions.

Payment methods

Cards: widely accepted, but often subject to stricter processing rules and higher decline rates.

• E-wallets: popular for faster deposits and withdrawals, yet may have limits on gambling transactions.
• Cash: remains a preferred choice for many customers, but creates handling and processing challenges.
• Vouchers and prepaid cards: commonly used for anonymity and to manage spending, though not universally accepted.
• Cryptocurrency: gaining traction, but limited acceptance among mainstream payment processors.

Authentication & security

Strong customer authentication (SCA) is often required, including 3DS, to mitigate fraud risks.

• Enhanced fraud monitoring is crucial, as gambling transactions can be appealing targets for fraudulent activities.
• Merchants should prepare for an increased incidence of chargebacks, particularly from friendly fraud.

Benchmarks (indicative, not guaranteed)

MDR: typically higher than standard e-commerce due to associated risk and potential chargeback volumes.

• Rolling reserves: may be significant to cover chargeback exposure, often reaching higher thresholds.
• Settlement cycles: generally longer, possibly extending beyond a week due to transaction scrutiny.
• Chargeback ratios: likely above retail averages, requiring careful management and monitoring.
• Approval rates: often lower for card payments due to risk assessments; e-wallets may see better performance.

Key metrics to monitor

Daily transaction volume and average ticket size to identify trends.

• Chargeback rates segmented by reason to effectively manage disputes.
• Authorization rates by payment method to optimize offerings.
• Customer behavior analytics to detect unusual patterns indicative of fraud.

Risk & Compliance

Merchants under this MCC are closely scrutinized due to elevated financial and reputational risks. PSPs and acquirers typically apply stricter controls, expecting merchants to proactively address fraud, chargebacks, and AML/KYC compliance.

Chargebacks & fraud

High incidence of friendly fraud (“I didn’t authorize this transaction”), bonus abuse, and use of stolen cards.

• Gambling-related disputes often arise due to misunderstandings of terms or game results, leading to chargebacks.
• Mitigation tools include behavioral analytics, velocity checks, device fingerprinting, and monitoring of unusual bet patterns.

AML/KYC expectations

Strong customer identity verification (IDV) with robust sanctions and Politically Exposed Persons (PEP) checks.

• Source-of-funds checks are crucial, especially for large deposits or withdrawals, and during irregular betting patterns.
• Manual review triggers include frequent high-value transactions, unusual betting frequencies, or the use of anonymizing technologies like VPNs.

Operational red flags

White-label setups without clear operator transparency, raising concerns about ownership and accountability.

• Traffic funneling from restricted jurisdictions and questionable affiliate marketing practices.
• Lack of responsible gaming controls, such as self-exclusion options or limits on deposits and losses.
• No clear communication regarding refund or chargeback policies, which can lead to increased disputes.

Onboarding Checklist

Merchants under the MCC 3624 (Lady Luck Hotel and Casino) should prepare a complete onboarding package before approaching PSPs or acquirers. A well-structured submission improves approval chances and shortens review times.

Legal & corporate documents

company registration and incorporation documents

• disclosure of beneficial owners (UBO) and corporate structure
• valid licenses for the relevant business activities
• policies: Terms of Service, Privacy, AML/KYC, Refund Policy, Responsible Gaming (if applicable)

Financials & risk management

recent financial statements and cashflow forecasts

• liquidity or reserve model for payouts
• description of antifraud setup and monitoring tools

Product & marketing

demo access or screenshots of the live platform

• marketing plan and traffic source overview (affiliates, SEO, PPC)
• geographic targeting information
• KYC flow details, including IDV providers and thresholds

Technical integration & security

payment architecture overview with supported methods/providers

• description of SCA/3DS flows, retry logic, and tokenization
• PCI DSS compliance status and data storage policy

Operations

customer support coverage (languages, 24/7 if available)

• SLA for dispute handling and chargeback response
• deposit, bet, and payout limits; self-exclusion mechanisms
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are critical for merchants in this MCC, as PSPs and acquirers will require proof of compliance before onboarding. Recognition of licenses depends heavily on the merchant’s jurisdiction and the markets they target.

Operator licenses

Nevada Gaming Control Board — essential for casinos operating in Nevada; recognized widely in the US.

• New Jersey Division of Gaming Enforcement — important for operators targeting the New Jersey market.
• Kahnawake Gaming Commission — provides licenses for online gaming, recognized for cross-border operations.
• Malta Gaming Authority (MGA) — respected in the EU, facilitating operation within various jurisdictions.
• Certain jurisdictions require multiple licenses depending on the type of gaming activities (e.g., slots, table games, sports betting).

Geo-restrictions

States in the US with gambling restrictions may prevent onboarding for operators without state licenses.

• International markets with strict gambling laws can block transactions or limit access based on local laws.
• Many PSPs will not process payments from grey markets or unregulated jurisdictions.

Certifications & audits

PCI DSS compliance is necessary for secure handling of payment card data.

• RNG (Random Number Generator) audits required to ensure fair gaming outcomes.
• Regular AML/KYC compliance audits to prevent illicit activities.
• Responsible Gaming audits to verify adherence to ethical gaming practices.

Official Definitions & Network Comparisons

This section shows how major card networks define this MCC and highlights practical differences that affect merchant onboarding.

Explanation:

While networks use similar terminology, the differences in phrasing (e.g., "gaming" vs "gambling") can impact how specific merchant activities are categorized. Each network may have varied policies regarding the types of licenses required and how they are enforced based on geographic location. Common reasons for merchant onboarding rejection often include insufficient licensing, operating in high-risk regions, and vague sources of traffic or clientele.

Alternative MCC Codes

Merchants often confuse this MCC with other categories. The table below shows which codes are related, why they are confused, and what risks misclassification brings.

Rule of thumb for merchants:

If your business is a casino or involves substantial gambling activities, ensure you classify it under MCC 3624. Misclassifying your business under alternative MCCs can lead to compliance issues, including account terminations, fines, and loss of access to financial services.

Best Practices for Merchants

Merchants operating under the MCC 3624, which pertains to casinos and gaming establishments, encounter a unique set of challenges and regulatory considerations. Adopting best practices is necessary to enhance payment acceptance, mitigate risks, and foster strong relationships with payment service providers (PSPs).

Classification & transparency

always use the correct MCC to avoid violations that could lead to account termination

• clearly display gaming licenses, policies on responsible gambling, and regional restrictions on your website
• maintain transparent billing descriptors to minimize confusion and disputes

Fraud & chargeback reduction

implement 3DS or step-up authentication for high-risk transactions, especially with large amounts or unusual patterns

• use straightforward billing descriptors and provide immediate transaction confirmations through SMS or email to enhance communication
• log all transaction and gaming events meticulously for resilient evidence in case of dispute representments

Payment acceptance optimization

offer multiple payment methods, including cards, digital wallets, and local bank transfers, to minimize failure risks

• analyze and route transactions based on geography and payment method, regularly testing PSP performance for optimization
• consider employing separate Merchant Identification Numbers (MIDs) for different gaming activities or locations to streamline compliance

Operational discipline

establish and monitor key performance indicators (KPIs) such as authorization rates, chargeback ratios, and average transaction values

• conduct regular compliance audits, update your business policies, and perform periodic test transactions to ensure ongoing adherence
• dedicate a team member or a unit specifically for handling disputes, ensuring timely responses in accordance with established service level agreements (SLAs)

Payouts & liquidity

keep a liquidity buffer to accommodate rolling reserves and potential delays in payouts due to gaming regulations

• automate anti-money laundering (AML) checks for all withdrawal activities, particularly those exceeding certain thresholds
• continuously monitor payout velocity and investigate any suspicious withdrawal patterns to maintain operational integrity

Business Scope & Examples

This MCC covers businesses directly engaged in gambling and gaming activities. Merchants classified under this category usually provide services or platforms where customers make payments for participating in games of chance. The scope is narrow and focuses on businesses with real-money transactions linked to casino operations and related gaming services.

Models

casino operations (slots, roulette, table games)

• sportsbook platforms (pre-match and live betting)
• online poker rooms and tournaments
• lotteries and bingo services
• fantasy sports platforms

Borderline cases

Skill gaming — real-money competitions based primarily on player skill (e.g., chess, esports); often requires separate review.

• Esports betting — wagering on esports matches; usually treated as part of this MCC.
• Social casino — apps with virtual chips that can be monetized; sometimes considered gambling if real-value exchange exists.

Signals for correct classification

customer deposits real money to participate in games

• platform operates with a house edge or bookmaker margin
• rules set limits for wagers, winnings, and responsible play