Less than a month after Paysafe Group Holdings Ltd. announced that the processing of online gambling transactions will become a main objective for the company, the strategy quickly paid off, as the processor expanded its relationship with Golden Nugget Online Gaming Inc. to Michigan.
The deal is an outgrowth of online gaming operators setting up shop in several states where online betting has been legalized. Paysafe has been processing transactions for Golden Nugget in New Jersey since November 2013 when iGaming Online was launched in that state.
“Golden Nugget, which is one of the best online casinos in New Jersey, is very focused on the casino side of the iGaming industry and we would expect them to target any state that offers online gaming,” said said Gregory Kirstein, vice president of business. development, igaming, for Paysafe. “The [transaction volume] in Michigan has been exceptional so far and reflects pent-up demand in this market. “
Paysafe’s platform will allow Michigan online players to fund their account using credit and debit cards, as well as bank accounts through the automated clearinghouse. To enable ACH transactions, Paysafe will connect Golden Nugget’s platform to the ACH warranty service of Global Payments Gaming Solutions. Players can use the funds to play video slots and place bets for table games, video poker, and live dealer games.
Online gambling in the United States totaled more than $ 1.9 billion in 2020 and is expected to grow more than 17% annually between 2021 and 2026, according to Mordor Intelligence, a consulting and intelligence firm market based in India. New Jersey is the largest online gambling market in the United States with more than a dozen online casino sites and poker rooms generating more than $ 225 million per year in volume, Mordor says. The state surpassed the cumulative lifetime $ 1 billion mark in volume in 2019.
“Michigan’s model for iGaming is similar to New Jersey’s in that online gaming operators can sell multiple products, such as online casinos and sports betting, which offers [gambling] operators like Golden Nugget and [processors] like Paysafe, a good operating environment, ”says Kirstein.
Players can expect to see winnings deposited into their bank accounts within two to five days for ACH based transactions. Earnings can be transferred to debit cards in real time using Visa Direct, which allows businesses to transfer money to billions of devices around the world through cards and accounts. Paysafe can also deposit the winnings immediately into its Skrill mobile wallet.
As the longer time it takes to deposit winnings into player accounts using the ACH creates a sticking point, Kirstein expects the retarder to be smoothed out as it goes. real-time payments achieve critical mass.
Looking ahead, Kirstein says Paysafe’s pedigree in processing lottery and sports betting transactions in Canada and outside of the United States has positioned the company to become a key player in iGaming processing as more and more states are preparing to legalize online betting. “We were an early player in this industry and have deep roots in it,” says Kirstein.