"We are already seeing our members racking up debts through these online betting platforms that they can't afford to pay back," Peters said. "We are not making a judgment on gambling or online betting; as a member-owned credit union, we simply can't afford the write-offs from our institution's credit and debit cards."

Carma Peters

Peters noted that before she made this decision to cut off credit and debit cards to online gambling sites, the credit union was fielding phone calls from some angry members who racked up a gambling debt and realized they were in financial trouble.

According to Peters, online gambling sites allow debit/credit card users to go negative. If they do not have the ability to repay that negative balance, the credit union must then charge off the balance and take it as a loss.

From Jan. 22 to March 1, Peters said 187 members made 1,211 gambling/betting transactions that totaled $82,715. The average bet was $203 and the average number of times that bet was made was 15. That means the average gambling debt amounted to $3,045.

"After we started looking into this, we felt it just wasn't worth the risk," she said. "We may lose the interchange revenue but in the long run, I think it was more of a proactive and positive thing to do, especially since we are a low-income designated credit union. And it is not that I want to be socially policing, but when it comes to write offs and our reputation, I have to look at that."

While people can access cash from ATMs at casinos, she noted that the ATMs in casinos limit individual withdraws to the user's available cash or daily limit, whichever option is less.

"The act of walking up to an ATM in a casino means people have to think about withdrawing the money and authorizing the transactions," Peters said. "While comparisons can be made to entering your debit or credit card into an online betting app or website, it is much easier to keep clicking away, unaware of the negative account status that may be building. I have a fiduciary responsibility to our member/owners. I can't continue a practice that I know will compromise our credit union's financial position."

MLCU is not the only financial institution in Michigan to cut off credit and debit cards from online gambling and sports betting sites.

Comerica alerted customers they won't be able to use their debit or credit cards to place online bets, according to a Feb. 2 article posted on the Detroit Free Press website.

The article reported there is "tension" in the gaming industry as to whether using debit and credit cards to gamble is beneficial.

"Regulators speculate it likely will take at least six months before you start to see the industry reach some agreement on how to handle the credit and debit cards," according to the newspaper's report. "Still, they add, it is difficult to predict what will happen."