All the ways players pay: Powering online sportsbooks’ player acquisition & retention in the US, Canada & UK
Published on 17 Jun 2023
Over the past year, there have been big changes in the online gaming markets worldwide, especially in North America. Legal online gaming and sports betting are becoming increasingly popular in U.S. states, and this trend continues. In 2022, new conditions, including New York and Louisiana, will start implementing regulations.
Canada also did a lot of work with the long-awaited opening of the Ontario market for private companies. By the end of 2026, the market will be worth $1.8 billion annually. Even in the U.K., a developed market, there have been changes, such as tighter standards and government reforms that have made things harder for some providers, like the ban on credit cards starting in April 2020.
In this situation, operators are working harder than ever to get and keep customers. Payments are a big part of players deciding where to play and stay. As companies face financial pressures in all markets, like high taxes, rising purchase costs, and a less positive economic environment, maximizing customer sales and minimizing customer loss has become more important.
This pattern is especially clear in the U.S., where companies have switched from marketing with an open budget to focusing on return on investment (ROI) to making more money. Putting money into their payment system and giving people the smooth payment experience they expect can be a game-changer here. But many managers still need to pay more attention to this and depend mostly on big awards and brand champions to bring in and keep players.
This study gets information from potential and current players in Iowa, Louisiana, Michigan, New Jersey, New York, and Pennsylvania in the United States, as well as the United Kingdom and Ontario in Canada. It looks at what players want from the payment process, points out where managers need to catch up, and describes what a smooth payment process should look like.
The study goes into detail about how popular different payment methods are. It talks about how debit cards are the most popular in most countries and how credit card restrictions in the U.K. and some U.S. states have affected their use. It also examines how mobile play affects players' desire to enter and make money. Also, the study stresses the importance of giving a bigger range of different payment methods, like digital wallets and eCash, to reach a larger audience in each key market. In short, it shows how payments will work for iGaming after 2023.
How Does The Gaming World Work?
Before fully studying the iGaming payments scene worldwide, especially in the U.S., the U.K., and Ontario's increased Canadian market, it's important to know who bets, how they bet, when they bet, and why.
75% of players worldwide have bet on sports online, which could be a good sign for companies looking for new customers. A fifth of people in the U.S., U.K., and Ontario who have never bet online are thinking about it in the next 12 months.
The number of people who bet on sports online is still small, and most do it for fun. Most people (18%) only bet once or twice a week, and 17% only bet a few times a month. Only 10% of sports bettors in the U.S., U.K., and Ontario bet 5–7 times a week or more. This means that providers mostly attract low-volume, low-value customers instead of high-volume, high-value customers who usually drive change and income.
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