DraftKings on Making Money Mobility Both Fast and Secure

DraftKings tells PYMNTS about the importance of maintaining a balance between payments’ speed and their security.

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The speed of payments is crucial in the gambling industry. Customers want faster payouts. In fact, the speed of payments is so important that it can be a differentiator for customers choosing between gambling operators. Based on this strong desire for quick disbursements, DraftKings offers instant payment options to its customers. Payment speed, however, is only part of the equation. There is also a considerable need for payment security.

Fraud cannot become the cost of speed. Although DraftKings offers its customers instant payment options, the company reserves the right to review withdrawal requests to prevent potential fraud, among other concerns. According to a company spokesperson, the betting industry must always ensure that systems and procedures minimize fraud and risk.

“We believe safe and regulated sports betting products are essential,” the spokesperson said.

Research shows that faster payments run the risk of increased fraud. A PYMNTS survey found that 45% of respondents who had experienced account takeovers or social engineering fraud were victimized while using faster payment options. It was not just these channels that were problematic. Overall, 27% of respondents had experienced fraud using faster payment methods. For comparison, the survey found that only 11% of respondents had experienced traditional credit or debit card fraud in the past year.

Real-time payments are a likely bet for the future of the online gambling industry. The representative from DraftKings said that when more banks adopt real-time payment functionality, it is likely that real-time payments will become common in the gambling industry. From DraftKings’ perspective, this would kill two birds with one stone.

“Once more banks adopt [real-time payments], we believe this process might increase speed and minimize fraud risk,” said the spokesperson.

The volume of real-time payments is expected to expand in the coming years, with projections pegging it at $54.37 billion by 2027, up from $15.37 billion in 2021.