The online gaming market, including the online gambling and sports betting industries, has exploded in recent years and is expected to rise to $2.2 trillion by 2021! That being said, integrating credit card processing on your sports betting website can be complicated.
As an online sports betting merchant, you will have a hard time finding a bank or payment processor who will support your business. Due to the industry's background and reputation, high chargeback ratio, and the complexities of the federal and state laws and regulations regarding the industry, sports betting businesses are labeled as high risk. As such, you need to have a specialized online sportsbook merchant account to process and accept payments.
There is good news: Despite the challenges that drive banks and other payment processors away from dealing with online sports betting merchants, the outlook is looking better. With significant help from the recent Supreme Court ruling on the "Murphy v. National Collegiate Athletic Association, No. 16-476, 584 U.S. ___ (2018)" case, the entry barriers for sports betting are being lowered.
Online sport betting merchants should bear in mind that, even with this ruling, they are still in a unique position compared to other low-risk merchants. Banks and other payment processors will likely continue to consider sports betting businesses "high-risk." This means that setting up a high-risk merchant account would cost much more than their low-risk counterparts.
The online gambling and sports betting industry has a huge growth potential, which may broaden offerings among payment processors in the future. But that is still too early to assume, which is why sports betting merchants should opt for a payment processor specializing in high-risk merchant processing.
So, if you want to get the most out of your online sports betting business, take the extra time to find a reliable payment processor who will work with you to identify and address your business needs.
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