07 2019 | BUSINESS
The role of payments in growing player trust
The overwhelming majority of online sports bettors in the US will only bet on sports where it is legal to do so. For gaming operators, partnering with trusted payments companies is one way to demonstrate this to Players.
The repeal of the Professional and Amateur Sports Protection Act last year enabled each state in the USA to proceed with its own regulation of land-based and online sports betting. The result of this is that several states, including New Jersey Pennsylvania, and West Virginia, have legislated to permit online sports betting and regulated operators have launched in those markets.
Momentum behind regulation across the US isn’t slowing down; Rhode Island, Arkansas, and Tennessee have all passed legislation enabling regulated online sports betting and bills in more states are expected to pass before the end of the year. As this happens more and more American consumers will have the opportunity to make wagers on regulated sports betting platforms.
PLAYERS ONLY WANT TO SPORTS BET WITH REGULATED OPERATORS
Earlier this year we asked US consumers about their attitudes to online sports betting for our research report into iGaming, All the ways players pay. One key takeaway from that research was that regulation is important to players, so much so that 70% of consumers said that they would only wager on regulated sites; only 10% of consumers said that whether a sports betting platform was regulated or not.
So for operators that are launching in the market, clarifying that they are regulated to consumers that are deeply confused and concerned by this issue is vital in acquiring market share.
THE ROLE OF TRUSTED GAMING BRANDS IN PROMOTING REGULATED GAMING
Inevitably, consumers will determine which sports betting brands are regulated and which are unregulated through recognising brands that they trust. This is one reason that many land-based casino operators in the US are launching branded sports betting platforms by partnering with European online sports betting operators; the casino’s brand gives consumers the requisite level of trust that the platform is regulated as it is associated with other regulated gambling activity.
But payments companies have an important role to play here also. Our research demonstrates that players are extremely focused on how they deposit and withdraw funds from their account; for example 23% of players said that the available methods for depositing and receiving winnings from their sports betting accounts was a key differentiator which sportsbook to wager with.
And players are more concerned about security than anything else when deciding whether to register for an online sports betting account. 35% of current sports bettors and 45% of potential future sports bettors named security as a key factor when selecting an online sports betting platform. This percentage was greater than any other factor, including the overall player experience.
So clearly, for operators it is imperative that they partner with trusted payment brands i.e. payments partners with a proven record of delivering secure payment solutions to gaming markets such as Europe, and perhaps more importantly don’t also facilitate payments for unregulated sites.
Payment brands that only partner in the US with online sports betting platforms that are regulated ensure consumers that they are wagering with a legal operator. In this way the deposit method a player uses can act as the guarantee that they are betting on a regulated platform; by committing to only making sports betting deposits using specific methods players can be assured that not only are their finances safe, they don’t have to worry about whether a site is regulated or not.
For example, paysafecard and Paysafe Group only partner with regulated online sports betting companies in the US. For players, this means that they can be assured if they deposit to an online sports betting account using a paysafecard, the site that they are betting on is regulated. For the 70% of US players that will only wager on regulated sports betting sites, committing to only depositing on sites that offer paysafecard is a legitimate solution to guaranteeing this.
As paysafecard gaming PINs continue to roll out across New Jersey and into other regulated online sports betting markets throughout 2019, consumers will become more aware of its relationship with regulated gaming. As this association strengthens and players seek to verify the regulated status of platforms at the checkout, it will be increasingly important for operators to offer this payment method to grow their market share.
paysafecard PINs are available to purchase in New Jersey now from 4,500 Point-of-Sale locations across the state, and will be available in every regulated online sports betting market later this year.
To find out more about how paysafecard can help your sports betting operation, please contact your Account Manager or send an email to: firstname.lastname@example.org.
All the ways players pay is available to download now.