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Payment in online gambling

Online gambling is often a gray zone. In comparison to more classic products, it is subject to much stricter regulations and is often classified as a risk industry. The flexibility and freedom, when choosing a payment provider, is therefore more limited. The payable transaction fees tend to be higher as well. This article will provide a brief insight into popular online gambling payment methods and services to be considered when signing contracts.

Tips for online gambling websites

Minimize failed transactions

The profit in online gambling depends on the successful online transactions. Each failed transaction has a negative impact on the profit. In this very fraud-sensitive area of online payments, it is essential to select a reliable payment providers, thus minimizing the risks of failed transactions.

Optimization of the conversion rate

The user experience is the key factor for the conversion rate. The loss of potential buyers mostly happens at checkout. If the checkout process is simple and clearly structured, buyers are often recurring customers. A major reason for canceled purchases are poorly designed checkouts. Simplified processes can increase the retention rate as well as the rate of recurring buyers.

Comprehensive fraud management system

Online gambling is particularly susceptible to fraud. Dealers and / or payment providers should always carry out a detailed fraud management. The increased risk of fraud is one reason why acquirers often refuse to provide sales protection for companies within the gambling industry. Here you can find more information about fraud management in online payment.
Online Gaming

Most popular payment methods in online gambling

Good online casinos offer many different payment methods. Online casinos are by no means confined to classical payment methods, such as the bank transfer. E-Wallets are the trend.


Pay with PayPal

The digital wallet solution PayPal presence on the online casino market is still somewhat meager, but is strongly on the rise. Trends are spreading rapidly on Internet and PayPal no different. It can therefore be assumed that most casino providers will accept PayPal in the next year. One of the advantages of  PayPal is that all important payment information of the customer is stored in a secure place. Furthermore, a simple casino bankroll management, for customers active in several online casinos, is a big plus with PayPal. A detailed cost overview can also be kept, even if several online casinos are played simultaneously. Money can be paid and withdrawn in online casinos. If the customer selects PayPal as a means of payment for his casino, he will usually be given a reward in the form of a start-up money grant. PayPal is also one of the safest payment methods on Internet. On the one hand, the customer does not need to specify sensitive bank or credit cards, and modern encryption technologies ensure that sufficient protection against hacker attacks is provided. However, PayPal requires the highest fees from all e-wallet providers.


This British e-payment provider with EU banking license is, besides PayPal, one of the largest e-wallets in the world. In the gambling area, Neteller is one of the most common methods to make real money transfers from and to the account of an online casino. This method of payment allows the customer to process payments quickly and easily. Like PayPal, Neteller usually provides the customer with a welcome bonus. Payouts of online profits work fast. In addition, Neteller supports 26 currencies and does not require any fees for transfers.


In the online gambling industry, there are few payment service providers who enjoy such a good reputation as Skrill. Over the years, this e-wallet solution has proven to be fast, safe and reliable. Skrill offers, as PayPal also does, a great overview of spending and revenue in online casinos, enabling accurate bankroll management for multiple casino accounts at the same time. In addition, gamblers benefit from a welcome bonus, a speedy deposit process and the highest level of data protection. The mobile payment, usually more vulnerable, are as safe as desktop transactions with Skrill. If unlawful payments are made from a Skrill account, the lost amounts will be refunded to the customer. Customer may also purchase additional fraud protection, for example against blocked profit disbursements. The fees are small compared to the standard. An important advantage that distinguishes Skrill from other e-wallets is the possibility to use a special MasterCard prepaid card with which the customer can access his balance. This card allows the customer to spend his casino profit in everyday shop. Find more information about e-wallets here.

Credit card payment processing

This method of payment is the most widespread in online gambling. German customers often use Visa or MasterCard to quickly and securely load real money on their online casino accounts. Customers do not need to worry about data theft, even if the casino will be provided all data. Credit card payments allow for a transaction cancellation. The credit card can also be insured, meaning that a stolen amount can be easily restored. No fees are charged. Some casinos even reward customers using credit cards with a special welcome bonus, as this method of payment is the cheapest and safest for merchants. Another plus is the large amount of money that can be paid. Customers avoid having to log into other online payment portal. See here for more information about credit card payment.

Debit card payments

The debit card is the most popular cashless payment in Germany with nearly every German having a checking account with an associated debit card. The essential difference to the credit card is the property of the money. When using a credit card, the customer plays with borrowed money, which he must pay back at the end of the month. Here, there is a higher risk of losing sight of the results and of being in debt. With the EC card, the customer always keeps an overview of his remaining budget. This method of payment is considered particularly safe in online casinos, although no verification is required. The security of the bank card works by means of special PIN and TAN procedures. These are not time-consuming and offer a good protection. From the casinos side, the money transfers with EC card are always free, however some banks charge fees on internet transactions. Credit cards has two advantages on debit cards. First, the debit card must be unlocked especially for online banking transactions through a request to the card-issuing bank. Secondly, in terms of security, the credit card is still slightly ahead because unauthorized payments on a debit card cannot be undone.


In addition to traditional payment methods, there are interesting alternatives such as Bitcoin. Bitcoin is a virtual currency and a peer-to-peer online payment system, which rapidly gained in popularity. For initial customers, deposits and withdrawals are usually free of charge. Partial fees may apply. However, these are extremely limited compared to other methods of payment. In addition, the use of Bitcoin is very safe. Because of the enormous speed at which payments are processed, chargebacks are almost impossible. The system is absolutely transparent as one can see where the payments come from. However, personal data are hidden, so that the privacy and thus the security of the customer is protected. The future of this currency in relation to the gambling industry is definitely something to keep an eye on.

Pay with phone bill

Many online casinos offer gamblers the possibility to pay through their mobile carrier phone bill. Players can then add funds to their accounts, quickly and simply, by using either their prepaid mobile balance or charging it to their phone bill. The funds without having to any impart sensitive financial information, only a phone number.

Online gambling merchant account in gambling

Despite its popularity and its money-making potential, most traditional financial institutions tend to refuse gambling merchant accounts. The industry’s background and history, as well as excessive chargeback ratios keep banks from approving gambling merchant accounts. Navigating regulations are the biggest challenge faced by the industry, especially with new regulations for online gambling being put in place. Gambling businesses gain to benefit from the expertise of specialized payment service providers.

Payment providers for online lottery

The lottery industry is a promising one, involving billions of dollars and employing countless people. While the popular opinion is generally favourable to lottery, it still faces some challenges, notably linked to illegal lotteries, addictions and fairness. Lottery providers can truly benefit from the support of a payment service provider.

Lottery providers need to to work with high risk payment service providers. Companies such as, ePay Global who focus on lottery pool merchants, offering them fast payments and payouts. Another example is Instabill, based in New Hampshire, who is specialized in high risk merchants and supports international transactions.

Payment services for sports betting

Betting on sports results is one of the best established form of gambling. In recent years, it underwent considerable changes, like most of the gambling sector, introducing new formats, products and an increased providers competition.

Sports betting

Sports organisations worldwide have made a broad acknowledgement that responsible, regulated gambling has a crucial role to play in not only generating interest and funds for their activities, but also for identifying criminals and fraudsters.

Here are some example of payment providers specialized in the sports betting branch. Zotapay, based in Belize, offers a customized all-in-one solution to sports betting providers. Worldpay help sports betting businesses accept payment globally, adapting the offered payment methods to each market, with a special attention to local payment methods.

Fantasy leagues betting

Growing steadily since the 1990s, fantasy sports, specifically fantasy football, not only has become a beloved tradition but a popular new way for people to gamble. According to the Fantasy Sports Trade Association, ca. 59.3 million players participated in a fantasy league in 2017. In the United States and Canada, the fantasy sports industry is estimated to reach $7 billion USD this year, with an average annual spending per fantasy player of $556 USD.

Over a third of fantasy players use mobile devices to access their league’s platform. During all sports seasons, they play, on average, three times a month. It is crucial for fantasy sports betting businesses to find the right partner to process credit card transactions. (EMB), specialized in providing high-risk merchant accounts for fantasy sports businesses, help merchants process credit card payments, with customized payment processing solutions.

Payment service providers specialized in risk-sharing

Payment providers in the gambling industry often must deal with complaints, fraud and chargebacks. This entails costs for the PSPs as well as the traders. Moreover, numerous local laws and various legal approaches make the provision of a payment service more difficult.

In order to control risks, keep costs low and to comply with the administration and standards, gambling providers should select their payment providers very carefully and also be constantly on the lookout for optimizations. Providers are, for example, optile, a company from Munich that offers advice on payment solutions in the betting and playing area. Additionally, Texas-based provider Easy Pay Direct has focused itself on high risks branches (except gambling).

Payment blocking in online gambling

In recent years, the German federal states have banned over 100 foreign poker and casino offers on Internet. Further prohibition procedures are running - the payment traffic to foreign suppliers is also to be blocked. The goal is to protect the game against counterfeiting. More than seven million consumers use online gambling services in the EU. Countries like Malta and Gibraltar have given licenses to hundreds of online vendors that offer their services without the necessary national concession and ignore national bans. These illegal offers make up a large part of the online gambling market in many countries.

The future of online poker gambling

Meanwhile, there is enough competition in the payment provider industry to eliminate all doubts about the lack of support for online casinos. In addition, countries with very restrictive access to gambling have become increasingly liberal. At the moment it looks as though the imaginary chains are being taken away from online payment providers in the near future and the market is gaining in attractiveness. Online casinos are constantly trying to find cheaper and faster payment methods as well as to make the payment process easier and safer for customers. For PSPs it is first come, first serve!

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