In November of 2013, the online gaming industry in New Jersey went live. The sports betting had many issues including the numerous declined credit transactions. There has been improvement but payment processing is still a challenge for the industry. Offshore gaming transactions have been denied for years. There is little interest in changing the policies by the credit card and bank providers. Special exemptions are not being granted for the states that have legalized specific types of online gambling.
Paysafe is one of a handful of businesses working with both merchants and consumers. They offer a large variety of services and products including the Skrill and NETELLER wallets, solutions for traditional payment processing and the prepaid Paysafecard. They have provided solutions for North American provincial and regulated state lotteries and European iGaming operators for fifteen years. Their position for identifying opportunities is unique. They provide reliable services and tools required by the merchants.
Online Betting Methods – the USA Challemge
The parent company of the IAG or Income Access Group is Paysafe. Income Access provides over 200 programs for individual gaming in Europe and North America. They are the only affiliate software marketing supplier for regulated poker brands and online casinos in the Nevada and New Jersey markets. New Merchant Category codes were established in April of 2015. This includes outreach to credit cards and banks, encouraging players to use accepted methods for payment and new options for payment processing. Paysafe ensures their customers can make deposits with debit or credit cards, cash, digital wallets and prepaid at all times.
Despite the MCC codes, a lot of financial institutions continue to decline transactions for online gaming both illegal and legal. Legal online gaming is only offered by a few states. This does not provide enough pressure for the banks and credit cards to change policies. Unless the banks begin to bend, the online gaming sites will be facing a tough situation. The sites are offering customers alternative methods such as high success credit cards. Consumers have preferred payment methods and must be steered to the acceptable methods.
One of the alternative methods is a digital wallet. Billions of dollars are moved by NETELLER and Skrill every month. Online sports transactions vary depending on the infrastructure of the country, technological and cultural considerations and payments. The United Kingdom represents one of the biggest markets for sports betting. More than half of these transactions for the last year involved a digital wallet. The Paysafe cards has not yet been added to the online gaming market in the United States. The card is expected to be released in the United States and have a tremendous reach.
Payment processing is not going to take the big leap until online gaming in the United States reaches a critical mass. Pennsylvania will make a difference when they are added during the near future. This will make four online gaming states also including New Jersey, Delaware and Nevada. This is only five percent of the population of the United States. The credit card companies that prohibit gaming transactions online are not going to revisit their policies until 25 percent of the population is included.