Draftkings uses Paysafe and PayPal to process payments in the states that allow online gambling. As a credit card processing solution , Paysafe is counting on the expansion of sports betting to expand into new states over the upcoming years. They currently operate throughout Europe and want to grow their market share in the USA. However, other sports betting payment processors are opening their doors to compete.
How Can I Get Payment Processing For Sports Betting
Sports betting payment processing is one of the hardest verticals to obtain a sustainable merchant account, but there is hope for new and existing companies who are looking to enter this market. Companies like Zen Payments provide large and small online gambling companies with sustainable credit card processing solutions .
Due to the high cost of entry in terms of size and history, new companies may find it hard to obtain a merchant account with a company like Paysafe. This is due to the fact that Paysafe, like other merchant account providers, wants to keep risk low and profits high. Meaning, they want to take on larger accounts that aren’t as risky as startups.
How Does DraftKings Process Withdrawals?
DraftKings processes withdrawals using PayPal to payout winnings on successful bets. As is standard with PayPal, these can take a few days before players see them in their bank account.
From a payment processing standpoint, payouts are easier to approve than transactions. In this case, players and gamers want to make payments as well as receive them after a victorious gambling effort. The payout is half the battle, but definitely the easier side of the equation.
DraftKings Mobile Payments
Increased demand for fast-action bets in real time has been a driving force for mobile payments in sports betting . With a constantly changing legal environment, it’s hard to pin down exact providers, but high risk merchant account providers are leading the way towards the new technology.
With fully integrated gateways that allow companies to interact with customer payments, some payment processors are focusing on developing new gambling-facing environments that serve both the fantasy sports company and the savvy players looking to place a bet.
Vantiv Drops DraftKings Merchant Account
The previous payment processor for DraftKings was Vantiv , who in 2016 decided the industry was too risky for them to provide solutions for. As a result, they dropped their daily fantasy sports betting accounts leaving DraftKings without a provider. The issue Vantiv faced was the added pressure around an activity that’s not yet legal in certain states.
The decision to stop providing merchant accounts came out after legal battles in the state of New York. Vantiv was faced with potential fines for carrying on what was deemed “illegal gambling activities”. These same issues occurred in Illinois and Texas. As such, Vantiv decided altogether to no longer pursue sports betting.
DraftKings PayPal Deposits
For online gamblers, depositing on DraftKings is done through PayPal. They oversee the exchange process in a secure environment that allows monetary exchanges. PayPal connects to your bank account via a personal identifier such as your email or phone number.
Apply For Merchant Account For Sports Betting
If you’re a sports betting company , it’s hard to find the right processor that can guide you through the payment obstacles within the industry. Nonetheless, companies like Zen Payments work with online gaming and gambling to create custom solutions catered toward your business model.
Table of Contents
- - How Can I Get Payment Processing For Sports Betting
- • How Does DraftKings Process Withdrawals?
- • DraftKings Mobile Payments
- - Vantiv Drops DraftKings Merchant Account
- - DraftKings PayPal Deposits
- - Apply For Merchant Account For Sports Betting