In recent years, the US sports betting and iGaming industry has rapidly grown in size, fueled by the introduction of more technology suppliers, payment providers, and gambling operators into the market. This expansion is largely due to the federal government loosening its restrictions on gambling across the country, prompting many states to follow suit with their own regulatory changes. As a result, the US gaming payments market has emerged as a key area of focus for businesses entering this space.
This development has created significant opportunities for many European companies to enter the sports betting and iGaming market in the US, hoping to replicate their success in Europe or introduce new offerings. However, assuming that the US gaming payments market will function similarly to its European counterpart is a critical mistake—one that many gambling operators and suppliers have made time and time again.
Understanding Regulators in the US Gaming Payments Market
The most notable difference between Europe and the US is the role of state-level regulators, each of which enforces its own unique set of laws. In the US gaming payments market, companies must navigate these varying regulations, which can include requirements such as providing a “test environment” before going live or restricting rollouts to specific days. For companies operating across multiple states, this means developing systems capable of seamlessly adapting to these differing requirements.
While Europe’s more streamlined approach to regulation may seem easier to manage, the complexity of the US gaming payments market is a reflection of its relative youth. As the market matures, these processes will likely become more standardized.
Certification Challenges in the US Gaming Payments Market
When planning to operate in a state, a payments provider must go through a certification process. While both the US and Europe require certifications, the US gaming payments market demands a new certification for each payment option introduced. This significantly lengthens the implementation process and adds friction for companies entering the market. For providers looking to establish a foothold, preparing for these challenges is crucial.
In contrast, Europe has refined its certification processes over many years, enabling smoother integration of new payment solutions. However, as the US gaming payments market continues to grow, these processes are expected to improve, eventually catching up to European standards.
Future Growth and Stability
As the US gaming payments market evolves, competition remains fierce, with operators continuously innovating to meet merchant and customer demands. For payment providers, staying ahead of technological advancements is essential to maintaining strong relationships with merchants and avoiding friction. Although operating in Europe may seem more straightforward, the US market’s rapid growth presents significant opportunities for those willing to adapt.
Over time, as regulators and businesses find common ground, the US gaming payments market will become more stable and predictable. Until then, companies that proactively anticipate challenges and plan strategically will be best positioned to succeed in this dynamic and competitive environment.
