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One often overlooked market for mobile payments is sports betting, and now some payments providers are wagering that the segment is about to get hot with the ongoing rollout of 5G mobile-network connectivity. “We would urge sports-betting operators to be ready for the increased traffic on their platforms. It’s a huge opportunity for them,” says Daniel Kornitzer, chief business development officer at payments processor Paysafe Group, in a statement.
The arrival of the new mobile technology, which is faster than 4G and boasts higher data capacity, comes just months after a key U.S. Supreme Court ruling in 2018 that swept away federal restrictions and left legalizing sports betting up to the states. Now, processors see a potential bonanza in mobile betting. Already, mobile apps are the preferred venue for 37% of all bettors in the United States, the United Kingdom, and Germany, according to research released Tuesday by Paysafe, well ahead of in-person channels, at 26%.
Even before the Supreme Court decision, U.S. sports betting was a big and growing payments market, with estimated volume between $60 billion and $150 billion. Now, online sports betting is legal and regulated in 13 states, including Nevada, New Jersey, and New York. More states have passed laws to legalize the practice but have not yet specified a launch date.
One key area where the new 5G connectivity could make a big difference, according to Paysafe, is so-called in-play betting, or wagering on specific outcomes while events are in progress. 5G can reach speeds up to 20 gigabytes per second, according to mobile-technology firm Qualcomm Technologies Inc., enabling more on-the-spot bets during sporting events. Some 42% of frequent bettors across the three countries surveyed on behalf of Paysafe said they will raise their volume of in-play sports wagers. The company defines frequent bettors as those placing more than one bet per week.
5G’s faster speeds could overcome punters’ concerns about slow Internet connections, according to the Paysafe report. Some 22% of players across the three national markets fretted they couldn’t place their bets in time with available connections, according to the report. Besides speed, 5G also comes with lower latency—the time it takes for data to enter the network in the first place—which could also encourage more in-play bets, Paysafe says.
Credit and debit cards are the most popular payment method for loading funds into an online betting account, with 46% of online bettors favoring that method, according to the survey. The survey, conducted online from Jan. 14 to Jan. 20, featured a sample size of 7,006 adults in the three countries.
