America’s online gambling offer expands, as three new payment service providers join the New Jersey market.
Online gambling came back to the US last year, and has proved to be a profitable industry at first. But lately, Nevada, New Jersey and Delaware’s internet casinos and poker sites have been stagnating, causing people to wonder whether legalizing them was worth it. Part of the problem, some say, is the difficulty in managing player funds.
But now that America has started to embrace internet gambling in the US, Neteller and PayPal are eager to re-enter the market. And soon after the online payment companies made the big announcement, Skrill has also thrown its name into the equation, which means US gamblers will soon have even more options of managing their payments and withdrawals from their online casino accounts.
Eager to support any initiative which can help boost the state’s internet casino market, the New Jersey Division of Gaming Enforcement (DGE) has given the three payment companies a warm welcome, approving their requests to join the local market. But will these new payment methods give America’s online gambling industry the much-needed boost?
New players in the game
At the moment, US players only have a few options of adding or withdrawing funds from their virtual gambling accounts. There’s the classic credit card payment method, but this seems to be complicating things instead of simplifying them. When it comes to Visa and MasterCard, the processing time can be very long and arduous, while American Express are refusing to offer this service altogether.
Industry experts and players alike have said that this is one of the biggest problems on New Jersey’s online gambling market, and one of the reasons why the industry isn’t doing as well as expected. It is a well-known fact that the state’s iGaming revenues are far below what authorities had estimated before the actual launch.
But all this could soon change, after Neteller, PayPal and Skrill have all announced their intention of entering the state’s gambling market. Industry representatives believe the business will finally pick up now that these three players are entering the competition, offering quick and easy alternatives to credit cards and other classic payment methods.
Penetrating the US market
While Neteller and PayPal are more popular in the US, Skrill has been dominating the European market. Vice president Joe Hall said the company will be targeting a 99% penetration rate in the US, but with over 300 million customers around the world, PayPal and Neteller are certainly worthy competitors for the ambitious European payment company.
Skrill is clearly on a mission to reach a high level of popularity in America, but it’s not going to be easy considering the competition is already well-established in the country. Hall added that conquering the US market would be “slightly more complex and would require two separate phases”.
First off, Skrill is aware that in order to successfully launch its existing product on the US market, it will have to comply with all the strict regulations imposed by American gambling laws. This phase was completed when Skrill partnered up with PartyPoker, the Tropicana and Virgin Casino, to launch in New Jersey.
Looking towards the future
The second phase will be more challenging, as it implies adapting Skrill to the US market. This stage involves a full makeover, including change the company’s tone, language, adding new payment processing options, as well as a new app to successfully work with US-based businesses.
“Long term we want to be the payment solution of choice for the person who wakes up in New Jersey, plays a $20 SNG on Stars, finished in 1st and then sips his entire roll to DraftKings for tonight’s fantasy baseball $50K guaranteed,” Hall explained.
Clearly, increasing brand awareness is essential at this point, as the American market has long been dominated by companies like PayPal. On the other hand, Skrill is the new kid on the block and a clever marketing campaign could turn this to their advantage.
Things are getting heated on the US gambling scene and with politicians currently debating whether to fully regulate or ban internet gambling altogether, who knows what the future will bring? Follow us to get the latest updates, and you’ll be among the first ones to find out.