MoneyLineWallet, the last widely accepted U.S. friendly ewallet, appears to have closed up shop. MoneyLineWallet was launched in May 2010. It was accepted at Cake Poker, Everleaf Gaming, Yatahay and several U.S. friendly online casinos. The option has been removed or disabled at all sites that once accepted MoneyLineWallet.
It all started about two weeks ago. Players that were expecting money to be removed from their bank accounts received this notice starting about two weeks ago:
Notice: Deposit Delays
We are currently experiencing some delays in our bank processing. This means that your deposits will take some additional days to appear in your bank account.
Please keep a personal record of each deposit that you make so that you can easily identify the debits to your account when they appear.
On October 24th, deposits stopped working on MoneyLineWallet. Live chat has not been online since. Players can still log into their accounts and see their transactions but cannot do anything else. MoneyLineWallet was used only for deposits at online poker rooms. It was not a cashout method. That should prevent this from being a UseMyWallet/QuickTender type of situation where players lost cashouts that were in transit, or had money locked up.
Processor failures not only affect players, but they affect merchants as well. The poker rooms and casinos that used MoneyLineWallet have to keep a reserve with the processor to cover possible chargebacks. If you combine the reserves with payments that have yet to be made to the poker rooms there is likely 3-6 months worth of deposits being held by MoneyLineWallet.
Considering it looks like there were issues with accessing player bank accounts, deposits were likely being made but never collected. As Full Tilt showed, that is very bad news for a poker room. Combine that with the reserves and there is going to be a shortfall in funds if the deposits are never collected. Considering MoneyLineWallet was not very popular, the hit will not be as big as with other processor failures.
U.S. players have already been very cautious about leaving money in ewallets. There are several ewallets where U.S. players had money locked up, and in some cases had money lost. EwalletXpress, EcheckUS, Neteller and Quicktender/UseMyWallet all come to mind. Hopefully with those lessons learned, there will be few losses from players.