There are billions of dollars at stake. An estimated $150 billion is spent on illegal sports gambling in the US per year. Following the Supreme Court verdict legalizing sports gambling last May, that money stands to funnel into the now-legal betting system.
Since the Supreme Court decision, Worldpay has prioritized educating banks on relevant policy changes, the risks surrounding debit and credit card transactions and other alternative payment methods, as well as other challenges financial institutions can expect as individual states move to legalize sports betting.
Despite the potential risks that banks and card schemes need to be aware of, the most important takeaway is that legalized gambling now makes for a safer and more secure transactional environment because the parties involved move out of anonymity.
Having worked with legal gambling throughout Europe and in Las Vegas, Worldpay is well positioned to bring that expertise and offer ways to process payments for legalized sports gambling as states pass legislation.
Worldpay recently partnered with DraftKings, a leading provider of daily and weekly fantasy games, In the launch of a mobile betting platform in New Jersey – the first state to legalize sports gambling outside of Nevada in 25 years.
As other states follow suit—Pennsylvania, West Virginia, and Mississippi are all close behind—there is enormous potential to make significant economic gain through increased tax revenues while appeasing their sports-loving residents. There is also a potential for gaming companies like DraftKings, as well as land-based casinos, to engage with players in new and responsible ways.
Just a few months ago, when the Supreme Court decision was made, the news sparked waves among sports fans all over the United States. Now that the 2018 NFL season has officially kicked off, fans across the country are itching to legally bet, like those in New Jersey can.
To better understand how Americans feel about the recent Supreme Court verdict, Worldpay conducted a survey around consumers’ feelings toward legal sports betting and their likelihood to participate in legal betting if it were available to them.
The results show overall excitement for the legalization of sports betting with minor concerns.
Respondents were most excited about placing bets on the NFL, and their anticipation is palpable: 30 percent of those surveyed would engage in sports gambling if their state legalized it.
That excitement is, however, tempered with concern about the financial security of a gambling transaction as 70 percent of those surveyed agree that payment fraud is a broad concern with sports gambling.
Considering the novelty of legal sports betting and recent examples of high-profile financial fraud, this isn’t entirely surprising. Part of Worldpay’s work to educate more broadly on the payments aspect of sports gambling is to provide clarity around the safety of each transaction.
Our top priority is protecting the players and the integrity of each transaction. The new legal sports gambling framework brings accountability to the forefront, removing the need for anonymous cash payments and enabling a transparent record of transactions over time.