Disbursements

Online Gambling Surges As Consumers Turn To Digital Casinos Amid The Pandemic

Online Gaming Surges As Consumers Turn To Digital Casinos Amid The Pandemic

Amid a pandemic that has shuttered brick-and-mortar casinos, the burgeoning online gambling or gaming space may make it through COVID-19 with less adverse financial effects than other verticals. The health crisis came in a year that was already set to be a pivotal one for the industry.

In 2018, a U.S. Supreme Court decision allowed sports betting. It inspired 2019 laws that govern the industry in 10 states and set guidelines such as how digital casinos can run or how sports betting would be taxed. This year was forecasted to be gainful for digital sports betting as it was the first one following the creation of the regulations.

The pandemic was putting that forecast to the test, yet short-term sporting event cancellations and decreased betting opportunities have not indicated challenges for the industry in the long haul. States have seen drops in revenue and small decreases in sports betting with an overall increase in earnings from other digital gambling sites.

For May, New Jersey’s Division of Gaming Enforcement said in a press release that total gaming revenue for the month was $82.6 million compared to $265.4 million the same month last year — a 68.9 percent fall. It noted that the internet gaming win was $80 million in April in comparison to $36.6 million in the same month last year — a 118.6 percent increase.

The Future Of Digital Gaming

Digital gaming is coming to the surface as an intriguing option for a number of people, and even more experienced betters are signing onto digital casinos. This activity could impact the future of the gambling space, as it may lead many more people to think about tapping into digital platforms.

There is one sticking point that digital casinos have to remedy, however: They have to address the speed at which consumers receive their earnings. Digital betters are not likely to be satisfied waiting the five days it takes for an automated clearing house (ACH) settlement or even for a paper check to arrive in the mail.

The challenge is similar to the one that U.S. government bodies were encountering as they tried to send out stimulus checks to citizens. A number of companies, however, were looking for methods to ease disbursements — and Ingo Money teamed with PayPal to provide citizens with quicker access to U.S. stimulus payments.

In the gaming world, however, disbursements can be central to providing fast access to winnings — and keeping consumers satisfied as they consider digital channels for their gambling activities.

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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