COMMENTARY: Don’t Even Try to Enter iGaming Without a Digital Wallet Offering

The regulated online sports-betting and casino market in the United States has exploded in recent years following the Supreme Court’s repeal of the Professional and Amateur Sports Protection Act (PASPA) back in 2018. This repeal put the power to regulate single-event sports betting in state hands, with many subsequently passing legislation and rolling out their own licensing and regulatory frameworks.

The result has been a highly competitive market. Online sportsbook and casino brands are locked in a fierce battle to acquire and retain customers. There is a strong first-mover advantage, with many providers running blockbuster marketing campaigns featuring generous welcome bonuses and signup offers.

But now the dust is starting to settle. Operators looking to optimize their offer are also looking at other factors—and at how important they are to consumers who are deciding where to play and then whether to ultimately stay.

Our most recent “All the Ways Players Pay” U.S. iGaming payments report found that withdrawing winnings quickly and easily was actually the most important factor for players (37%), ahead of a brand they could trust (32%) and the availability of good promotional offers (28%).

Another key trend that our report highlighted was that, for the majority of players, being able to deposit funds using a digital wallet is a critical component of their sports-betting experience. For high-volume bettors, digital wallets are the most popular deposit method (35%), ahead of credit and debit cards.

Why is this? High-volume players often like to make larger deposits and withdrawals compared to standard players. Digital wallets allow sportsbook and casino operators to cater to the wagering preferences of high-stakes American online gamblers.

This is why we recently launched a VIP iGaming Player program for our Skrill USA digital wallet, which is now live with operators such as PlayUp USA in New Jersey and Colorado. Once enrolled in the VIP program, players can instantly fund deposits and receive payouts. But the program also features some of the highest limits for instantly funding a deposit in the U.S. iGaming industry.

Once players have been onboarded, their instant-funding deposit limits can be significantly increased above standard limits, depending on individual know-your-customer verification. Unlike the case with bank-wire transfers, players can instantly fund their accounts 24/7, including on weekends. Payouts can be transferred from their wagering account to their Skrill USA account in real-time, and then directly into their linked bank account, prepaid card, or another operator.

The speed of payouts must not be overlooked by online sportsbook and casino operators. Almost one-third (32%) of players surveyed said that payouts should be instantly credited to their accounts, while 34% said they should be credited within 24 hours. High-volume bettors are even more insistent that withdrawal times should be short, with 41% believing they should be instantaneous.

Payments may not be as marketable as brand ambassadors and bonuses. But they’re a critical factor to players when deciding where to wager and play. Without digital wallets, operators are simply not able to offer the experience that bettors are seeking. That in turn means they run a high risk of players wagering with competitors. In such a highly competitive market, it will be the books and casinos that offer the best user experience across all areas that acquire and retain players at scale.

—Zak Cutler is president of global gaming at Paysafe Ltd.