A couple weeks back, we brought you the story of a reader who found out that Chase now considers playing the lottery as internet gambling — but only after they nailed him with exorbitant fees and sky-high interest. Now, the New York Lottery has turned the tables on Chase MasterCard, alleging that these extra charges are illegal.

“They’re breaking state law,” said a rep for the New York State Lottery. “It is illegal to charge additional fees beyond the price of a lottery ticket.”

Starting this summer, people who had used their Chase MasterCard to purchase Mega Millions subscriptions found that the transaction wasn’t being treated as a straight charge, but as a cash advance.

The bank was taking advantage of a new federal law aimed that curbing internet gambling, but State Senator Addabbo says, “It seems to be a misinterpretation of federal law,” and has called for an investigation into the matter.

Priceless? No, that’ll be $10. MasterCard illegally adds fees to Lottery players [NY Daily News]

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Chase Declares New York State Lottery ‘Illegal Internet Gambling’

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