How to choose a payment gateway for your gambling website

Online gambling is one of the fastest-growing industries nowadays. The total revenue rate has been constantly increasing, driving even more rapid growth in the number of companies in the market. It’s expected that by 2028, the gambling market revenue is expected to reach $138.08 billion. 

With the online gambling industry experiencing unprecedented growth, the significance of a secure and reliable payment gateway cannot be overstated. As the number of companies in the market continues to surge, the need for a robust payment system becomes even more pronounced. 

What is a Gambling Payment Gateway?

Simply put, a payment gateway is a security blanket both for the gambling website and the player. Even after the registration process and verification procedure, a player does not have access to all the options on the website. For instance, placing any bets without funds deposited previously is still not allowed. The payment gateway solution helps users transfer their funds from credit/debit cards or diverse wallets to gambling accounts.

In other words, a payment gateway may also be considered a mediator between a customer and a payment system. This particular system is also responsible for encrypting financial information to protect data.

It’s also important to mention that gambling payment gateways are high-risk payment processors. Several factors determine the high-risk level, such as the gambling industry’s uncertain legal status, extremely large payment volumes, a high percentage of chargebacks, and more.

Top Functions of the Payment Gateway

Talking about the specific functionality characteristics of the payment gateway for gambling websites, it’s worth highlighting the following: 

  • security of the transaction process through encryption and tokenization;
  • diversity of the payment methods for the merchants;
  • to minimize the risks of fraud actions;
  • to collect the data and provide an analytics report for business;
  • to inform the clients about the complete financial transactions;

How to connect a payment system for a gambling business?

There are a few steps in connecting the payment system to a gambling platform:

  1. Ensure the legal factors, such as a favorable jurisdiction for the gambling sector;
  2. Open an account in a local bank;
  3. Get a license to operate the business legally without breaking a policy;
  4. Find a payment gateway provider to open a merchant account;
  5. Discuss the process of integration with the payment gateway team;
  6. Specialists connect the solution through API and FTP protocols;
  7. The final settings for the proper functionality.
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Types of Gambling Payment Gateways 

An electronic payment gateway may provide different ways of transaction processing, including the following:

  • hosted (redirecting) gateways;

This type may also be called a redirecting one. While completing a transaction, such a gateway redirects users away from a casino website checkout page. The hosted gateway provides the highest level of security and protection from fraudulent actions.

  • self-hosted services;

In this case, businesses can have more control over the user experience. A merchant’s website collects all the payment information independently without any redirections. 

  • local bank integration gateways;

Last but not least, the local bank integration gateway is the standard basic-level solution. It redirects customers to a payment system’s website to provide all the requested information. It is easy to integrate; however, this type is not the best choice for large businesses.

Conclusion

It’s crucial for gambling brands to consider such criteria as the number of available payment systems, the general possibility of integration, and the transaction commission. Moreover, while a gateway processes payments, the business needs to get PCI-DSS certificates. Such an option is more complicated than traditional integration. Still, a payment gateway is definitely one of the most popular solutions among gambling platforms. The driving reasons are reliable security measures, easy integration into the business, and diversity of payment methods for customers.

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