Skrill Competing with PayPal for US Online Gambling MarketPublished August 28, 2014 by Mike P
Skrill can now be used to process online gambling payments in New Jersey, but standing in the way of US expansion is PayPal.
Although Nevada, New Jersey, and Delaware have all chosen to legalise online gambling for their residents. Players from those US states have encountered problems when it comes to performing financial transactions. Credit cards have caused the most trouble, thus far, with vendors refusing to process payments to online gambling operators. In response, US online gamblers are now turning to digital wallets as a solution.
Accepted by New Jersey Casino Sites
Skrill is the biggest brand in the gambling market for digital wallets, with the payment method holding transmissions licenses in all US. Notably, Skrill also has approval with the New Jersey Division of Gaming Enforcement (DGE) for processing online gambling payments within the state.
Joe Hall, vice president of Skrill in the US, is targeting a “99% penetration rate” in an attempt to achieve the high level of prevalence the payment method has in Europe. However, there is a PayPal-shaped barrier in the way of Skrill increasing its presence in the US. PayPal currently boasts more than 150 million global users.
US Growth Strategy
DGE approval represented the first phase of two. The rationale was to provide New Jersey residents with a reliable payment method that would be accepted by online gambling operators in the state. Phase two is much wider, entailing the customisation of the brand’s pitch for US customers. This phase will be much more challenging as it will bring Skrill into direct competition with PayPal.
PayPal to Return
Outside of the US, PayPal is a widely accepted form of payment among online gambling operators. Inside the US, however, PayPal had long been absent from the market due to its illegal status. But now that three states legally allow online gambling, PayPal is set for a return to the market. Chris Kfrafcik of Gambling Compliance announced in August that PayPal was in discussions with the New Jersey DGE to complete a deal.