Paysafe, a global specialized payments platform, has become the latest incorporation in the newly regulated New York mobile sports-betting market.
On Wednesday, the company announced its expansion to strengthen its position in North American iGaming payments and affiliate marketing. Steered by Zak Cutler, Paysafe’s new CEO of North America iGaming, the move builds on the company’s 2021 growth across the U.S. and Canada, where its established presence benefited from federal sports betting regulation, and a major Skrill USA digital wallet upgrade for iGaming.
Through its payment gateway, Paysafe is now processing online deposits and payouts for New York players with mobile sports-betting brands in the new market, which is expected to reach $1 billion in annual revenue, according to Macquarie data cited by Paysafe in a press release. The software of Income Access, Paysafe’s marketing technology and services provider, is also already powering several brands’ New York-focused affiliate programs.
With over 20 years of experience supporting North American and global gaming operators, in 2021 Paysafe established a payments footprint in Arizona, Connecticut, Louisiana, Michigan, Montana, Virginia, and Wyoming, where the company either went live with operators or received licensing. Having appointed former DraftKings and Jackpocket leader Cutler in Q3 to lead its new North America iGaming division, Paysafe is now supporting gaming brands with payments and affiliate marketing in a total of 18 states plus Washington, D.C.
Flagship brands FOX Bet, Golden Nugget Online Gaming, and PointsBet expanded their existing payments partnerships with Paysafe into new states in 2021. New partners Fubo Sportsbook, PlayUp, SuperBook Sports, and WynnBET, among other brands, plugged into Paysafe for traditional credit and debit card payments, the Skrill USA digital wallet and paysafecard and Paysafecash eCash solutions.
2021 also saw tech innovation, with a major Skrill USA revamp in Q4 tailoring the digital wallet specifically for iGaming brands and the full spectrum of their customers – from recreational players to VIP sports bettors. Spanning instant funding of player deposits and receiving payouts plus enhanced UX, the first of several planned Paysafe product upgrades has seen "strong adoption" by operators according to the company.
In Canada, Paysafe unveiled a payments partnership with PlayAlberta.ca following the Q4 2020 launch of Alberta’s only regulated online gambling website. This added to longstanding processing partnerships in the country including Atlantic Lottery Corporation, BCLC, Loto-Québec, and Ontario Lottery and Gaming (OLG). The company was strongly positioned when federal regulation last June permitted single-event sports betting, especially in the most populated Canadian province of Ontario, whose iGaming market is expected to generate gross revenue of C$1.86bn by 2026, according to Vixio.
Income Access also continued to grow in the U.S. iGaming affiliate marketing space in 2021, with the Paysafe company entering Arizona, Colorado, Connecticut, Michigan, West Virginia, and Virginia. New flagship affiliate program partners included Betfred Sports USA, Virginia Lottery, and WynnBET.
Cutler said: “Payments and affiliate marketing play essential roles in customer conversion and the growth of iGaming brands and the wider market. We’re proud to have supported the ongoing expansion of the North American online gaming space in 2021 through 2022, with our recent entry into New York – a pivotal market that will hopefully galvanize broader U.S. state and Canadian provincial regulation.”