The role of fintech in the online gambling industry | Yogonet International

Between 2017 and 2024 the online gambling industry has showcased remarkable growth. The data from Statista suggests this market was worth around 30 billion USD in 2017 and it has surpassed 90 billion in 2024. That’s triple times the value and then some. Of course, there are several key factors that account for this upward performance. First off, there are more people alive now than back then, but more importantly, gambling entertainment was made legal in new markets. But none of this would be possible without supporting digital infrastructure, and fintech companies play one of the central roles here. 

Here we will specifically focus on payment solutions for gambling, and how they contributed to this branch of entertainment.   

Fintech innovations and their use 

The dynamics of the global economy demanded creative solutions to payment processing. Relying only on wire and SWIFT payments became troublesome due to longer processing. So, fintech companies came up with software solutions that could keep track of user transactions, and make processing near instant. Basically, these are clearing channels that exist on top of regular banking systems, and fintech companies take on the responsibility of vetting users and balancing the books. 

For this to work fintech companies need to have strong data-processing capabilities. On top of that, they need to leverage machine learning for transaction monitoring. The goal here is to automate transfers and to stop them automatically if they look suspicious. 

Fintech and online casino technology

Given how casinos in the past were associated with financial fraud, using advanced banking software is what enabled these gaming sites to operate legally. On top of that it made deposits and withdrawals for players more convenient.

First casino brands relied on the most commonly used digital payment systems like PayPal. To this day online PayPal casino sites are highly relevant as this digital banking provider has a massive user base. So, it’s convenient for them to pick one of the best PayPal casino sites whenever they want to gamble. 

However, even PayPal hasn’t addressed the issue of accessibility to its fullest. There were many who simply didn’t have a means of making deposits, as they didn’t have digital or regular banking accounts. That’s when SMS payments came into play. This made it possible for users to add funds to their casino account, and through text message and those costs would then be added to their phone bill.  

Privacy and security

Due to the prevalence of phishing attempts and other online scams, many are rightly reluctant to leave sensitive information online. This made it difficult for online casinos to gain the trust of more cautious users. Through certain fintech innovations innovations, these doubts were lifted. We are talking about prepaid digital vouchers, that transfer the money through an authentication code. Some examples are:

• Paysafecard

• NeoSurf

• PayPal Gift card

• AstroPay Card

• Flexepin

This has allowed players to test the legitimacy of the brand. They would make a small deposit, without leaving their card information on the website, and gamble for real money. Additionally, these payments would never appear on bank statements or other transaction records, so they could keep the hobby private.  

Instant play    

Through the use of fintech in online gambling, online casinos were able to introduce new quality-of-life features for the users. One of them is instant play. One of the most tedious parts of creating an account for online gambling was the process of verification. Instant play sites have a special information-sharing protocol with certain digital banking solutions. This allows players to add funds, sign up, and verify the account with a single payment.

Blockchain and digital payments in gambling

Crypto payments were another massive game-changer for the iGaming sector. Many countries don’t outright ban online gambling but they don’t approve of it either. As a result, there aren’t any locally regulated brands that fans of casino games can use. This untapped potential was an opportunity for sites based offshore that accepted players from these regions. However, even with modern payment solutions for gambling, the processing time was still sluggish. 

The inclusion of crypto support has successfully bridged that gap. Unlike e-wallets or other digital payments in gambling, crypto wasn’t using the regular banking payment network. Blockchain is a separate clearing channel that validates transfers automatically and doesn’t rely on human approval. So, if the casino’s accounting team approves the transfer the funds are transferred instantly. As a result, cross-border payments were no longer a pain point for players who used offshore sites.  

What’s next? 

Online casino technology will continue to evolve in conjunction with fintech. This means even safer payments through the use of features like biometric authentication. Also through the use of AI software payment providers can set up new safety features. This could mean displaying prompts or following up with customers who have spent a lot on gambling. In other words, they could help suppress irresponsible spending and identify at-risk gamblers.