Prioritizing Banking Options in Sports Betting

When it comes to the current sports-betting boom in the US, major players aren’t wasting any time or skimping on resources when building the most competitive and easy-to-use platforms. Since 2018, when the Supreme Court repealed a federal ban on sports betting, the race has been on.

Not only are top brands coming to the US from overseas alongside a diaspora of wagering options from the Vegas strip, but top sports broadcasting groups and fantasy providers are also shifting to open their own sportsbooks.

Given the quantity and quality of these sportsbooks, first-time bettors have access to reliable odds, clean platforms with online and mobile options, and plenty of analysis from top pundits. And though punters prioritize sportsbooks that offer key insight and a wide range of wagers, banking options are just as important.

For instance, a FanDuel sportsbook review looks at banking features alongside the sportsbook, bonuses, and the group’s mobile app. Clearly, simple deposits and quick cash-outs are top priorities for punters—but that’s not the only consideration related to banking.

 

Ways to Bank 

In many states, such as New Jersey and Pennsylvania, sportsbooks are required to partner with brick-and-mortar casinos. Not only does this help local regulatory bodies monitor sportsbooks, but it also helps attract new customers who may already recognize a brand from their days in Atlantic City.

For this reason, banking options closely resemble those offered by online casinos. New to gaming altogether? Don’t worry—most online casinos use banking options that are recognizable for those who have set up an account online linking to a credit card or bank account.

From sportsbooks to shopping sites like Etsy, third-party providers (TTP) handle financial services to protect user information, track each exchange, and expedite processes like withdrawals and deposits. According to Globe Newswire, the global sports betting market was worth $85,057 billion in 2019, which means major companies are happy to keep track of every cent.

TTPs help facilitate payment options for withdrawing and depositing funds. Typically, sportsbooks allow punters to deposit money via digital wallets like PayPal, online bank transfers, credit and debit cards, prepaid cards, and certain physical kiosks (such as ‘PlayNearMe’ outlets).

Withdrawal methods vary and can include digital wallets like PayPal, check delivered by mail, electronic checks, automated clearing house payments, and prepaid cards.

Cashing Out vs. Withdrawing

Even punters who have long and storied histories with the industry may not be familiar with the difference between cashing out and withdrawing. Prior to 2018, sportsbooks could only operate in-person in Las Vegas, which meant cash withdrawals at the cage were the only way to collect winnings.

Today, some sportsbooks, like FanDuel mentioned above, offer ‘cash out’ options. A cash-out feature allows punters to settle a wager before the event has finished. Not all wagers are eligible, depending on whether they’re parlaying bets or depending on the circumstances surrounding a sporting event.

While a withdrawal allows bettors to access their winnings, a cash-out option allows bettors to cut their losses and settle a wager at a certain value. But be careful—at many locations (particularly in-person establishments) ‘cash out’ is another way to say withdrawal.

To differentiate clearly, cash out options meant to settle a wager early are called ‘cash out bets’ or a ‘buy out’. They’re typically used for in-play live bets or long-term futures bets.

 

Cryptocurrency Betting Options

It’s impossible to discuss modern banking without at least mentioning cryptocurrency. Worldwide, the most traded currencies according to Statista are Tether, Bitcoin, Ethereum, Dogecoin, Cardano, and XRP, with Bitcoin and Tether worth more than $100 billion.

Though the average punter hasn’t delved into decentralized banking yet, sportsbooks are already looking to offer crypto wagers given the association of high-value bets and currencies like Bitcoin and Ethereum.

However, most US sportsbooks are too busy launching online and mobile platforms according to state-by-state regulations. Offering wagers in Bitcoin isn’t a top priority, though certain Vegas oddsmakers and overseas companies have already shifted to accept BTC.

Looking ahead, international sportsbooks will continue to roll out their crypto offerings to accept more than the mighty Bitcoin. On a domestic, US level, crypto will likely remain a novel way to wager in the coming years—though that’s likely to change as the market matures.

As of January 2021, the Global Crypto User Index reported the average crypto user as male, aged 34, with an average income of $25,000 per year. This matches well with the average demographic reported by the American Gaming Association as of 2019, which states 45% of core bettors are aged between 23 and 34.

For now, sportsbooks are easing into the world of crypto. But with major moves on the horizon from the worlds of blockchain and fintech, who knows how quickly oddsmakers will change.

Digital Wallets

Digital wallets are services that allow users to upload and store their banking information in order to make purchases or other online transactions in a safe setting. As aforementioned, PayPal is one of the most well-known digital wallets alongside other big players like Cash App, Due, and Google Wallet.

For Apple and Samsung users, digital wallets are offered as part of a smartphone’s operating system (Cash App and Samsung Pay). These programs help users track their spending, protect their information, and make purchases with the tap of a button. There’s no need to type in any card or account numbers, as they’re pre-registered with the digital wallet.

For punters looking to start placing wagers, a digital wallet must be compatible with the sportsbooks banking options. In other words, an account with Venmo won’t work if the only digital wallet used by the sportsbook is PayPal.

Given many people use digital wallets to track their spending and protect client information, they’re a preferred method for banking with a sportsbook. Additionally, digital wallets prevent a card from declining purchases (bets) at sportsbooks because they don’t recognize the IP address.

However, keep in mind that digital wallets exist to make a profit. Small fees are often taken out for larger withdrawals, and credit purchases are often subject to more dues. However, given the many benefits of digital wallets, they’re clearly the best banking option for sportsbooks.