Posted on: February 14, 2022, 10:15h.
Last updated on: February 14, 2022, 11:54h.
Shares of Paysafe Ltd. (NYSE:PSFE) are rallying Monday. That’s after the provider of digital payments services said it’s now processing payments for sportsbook operators in Louisiana and Oregon.
That new market access for the fintech company comes about because of prior relationships with Caesars Entertainment (Louisiana) and DraftKings (Louisiana and Oregon). In midday trading, Paysafe is higher by more than 4% on news of the new market entries. Paysafe has longstanding, multi-state payments partnerships with both gaming companies.
Paysafe’s entry into the Oregon and Louisiana sports-betting markets sees the company now supporting sportsbook operators with payments and affiliate marketing in 20 states plus Washington, DC,” according to a statement issued by the company.
Sports betting is currently live and legal in 30 states and Washington, DC.
Paysafe Could Love Louisiana
Louisiana is a recent entrant to the regulated sports wagering market in the US. But the southern state could be a fertile opportunity for payments processors, such as Paysafe.
Prior to legalizing sports wagering, the state was the fifth-largest gaming market in the country, and data indicates it’s off to a fast start with sports betting. Sports wagering at Louisiana brick-and-mortar locations debuted in the fourth quarter, with BetMGM, BetRivers, Caesars Sportsbook, DraftKings, and FanDuel recently rolling out mobile apps in the state. Data confirms the state’s mobile debut is a success, with the number of transactions topping those in some larger states while comparing favorably with New York on a per capita basis.
Citing the American Gaming Association, Paysafe says Louisiana could be a $5.1 billion sports betting market when it reaches maturity.
“Paysafe is also optimizing Louisiana sportsbook customer conversions through the affiliate software of Income Access. Several Louisiana sportsbook operators, including Caesars Entertainment for its Caesars Sportsbook, are using the Income Access affiliate platform to track their affiliate programs,” according to the statement.
Last month, DraftKings became Oregon Lottery’s exclusive sportsbook provider, paving the way for PaySafe to enter that state as well. In that state, bettors can fund DraftKings Sportsbook accounts through the operator’s connection to Paysafe’s payment gateway. Oregon isn’t a massive sports wagering market, but it adds to Paysafe’s scale.
As of February 14th, 2022, the company supports approximately 75 percent of operators in the country with payments or marketing solutions across 21 jurisdictions,” said the company.
Paysafe is also the leading payments processor for gaming companies in Canada and Europe. In the former, the fintech company works with the bulk of that country’s top regulated iLottery and gaming brands.