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Solving the payments challenges facing the gaming industry

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Solving the payments challenges facing the gaming industry
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Richard Cooper, Equals Money CFO (former CFO Entain PLC)

When it comes to payments, a game of risk is the last thing you want to put your business through. For an industry that has been typically seen as high-risk by traditional finance institutions, the gaming and gambling industries remain a huge and underserviced market. Revenue in the Online Games market is projected to reach US$26.14bn in 2023, so why is this booming industry still being ignored and provided poor service?

Alongside overcoming the low appetite from banks, these industries face unique challenges. With the customer base continuing to grow, users have certain expectations including a seamless and instant payments experience. Here we’ll look at some of these challenges and how gaming companies can overcome them.

Cross-border conversion

Gaming is global. Any one company will operate in a number of territories, meaning a whole host of currencies. A gaming wallet will usually be a specific currency, but especially in the world of poker where USD is standard. Customers will deposit, lose, and win in their local currency, which will be converted into USD for play, then converted back for any winnings taken out.

Each of these conversions at a traditional institution means one of two things for gaming companies: either being hit with poor exchange rates in both directions or setting up accounts in every locality that has a different currency. Even within Europe, the big gambling nations of UK, Sweden, and Denmark each have their own currencies outside of the Euro, adding complexity for companies who want to be making seamless payments in all three. Each of these accounts requires its own logistics and fees, so it’s a lose-lose scenario for these businesses.

A simple solution for these businesses is multi-currency accounts. By implementing these accounts to work with a customer’s digital wallet, customers can send and receive funds in a range of currencies (38 for Equals Money customers) into a single account, eliminating the need for conversions or multiple accounts. By making the payments process pain-free for both the customer and the business, it allows both to move money seamlessly. The added benefit from an operational side of things is that it also helps companies pay their staff and suppliers across borders easily and quickly.

Slow spend stops spend

Nothing slows the streamlined gaming process more than waiting for a payment to clear. Companies see speed and security as a balancing act, but there’s no reason for this to be the case. Working with a payments partner that has integrations with SWIFT, UK Faster Payments, SEPA, and SEPA Instant means payments can be consolidated rapidly – without sacrificing security. These transactions help to keep users engaged and worry free, boosting reviews and business bottom lines.

The personal touch

In a digital world, it’s easy to forget about the importance of human understanding and interaction. Dealing with a bank or other institution as a gaming company, you’ll see how little these institutions have had to invest in customer service. When you do get through to someone, they will likely have little to no experience of the challenges you face.

Gaming businesses should look for providers that offer personal account managers and market specialism. These industry experts act as a single point of contact, compared to often faceless experience with banks. They will take you through a dedicated compliance resource to ensure the onboarding process goes as smoothly as possible and any of your concerns are addressed as early as possible.

The gaming industry is an exciting space to operate in. By connecting customers and businesses with faster, secure payments, gaming companies should feel empowered to tackle growth opportunities, rather than be stuck behind payment barriers.

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Industry News

Dutch Mental Health Care Calls for Total Ban on Online Gambling Advertising

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The Dutch mental health service is calling for a total ban on online gambling advertisements in the Netherlands.

Although a ban on untargeted gambling advertisements and a ban on the use of role models has been in effect since 2023, a recent research by KRO-NCRV’s Pointer shows that (illegal) gambling companies and sports tipster platforms are still enticing young people via social media such as TikTok and Snapchat.

By using influencers and terms like “free money”, they try to attract a young audience and thus lower the threshold to start gambling. This concerns both legal online casinos and online casinos that do not have a license in the Netherlands. The Gaming Authority has started an investigation based on Pointer’s findings.

Pointer’s research shows that part of the gambling industry deliberately targets young people who are often susceptible to promises such as “fast money” and the influence of role models. Ruth Peetoom, chair of the Dutch mental health service, compares this approach to that of the tobacco industry, where similar marketing strategies were used to get young people to smoke.

Despite the existing advertising ban, gambling companies continue to explore the boundaries of the law, according to Peetoom. The Dutch mental health and addiction care associations in the Netherlands therefore push for a total ban on online gambling advertising and stricter rules for the duty of care of gambling providers.

With the call for a total ban, the Dutch mental health care sector hopes to prevent further normalisation of gambling behaviour among young people and to protect them from the temptation and consequences of online gambling.

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Compliance Updates

UKGC: Market impact data on gambling behaviour – operator data to Oct 2024

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UKGC: Market impact data on gambling behaviour - operator data to Oct 2024
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The Gambling Commission has published further data on the gambling industry in Great Britain.

This data, sourced from operators, reflects the period between March 2020 and September 2024, inclusive, and covers online and in-person gambling covering Licensed Betting Operators (LBOs) found on Britain’s high streets.

Comparison should not be made with the industry statistics dataset, as this dataset may include free bets and bonuses and does not include data from all operators.

This release compares Quarter 2 (Q2) of financial year 2024 to 2025, with Q2 of 2023 to 2024, looking at how the market has changed in comparative periods over a year.

The latest operator data shows:

  • online total Gross Gambling Yield (GGY) in Q2 (July to September) was ÂŁ1.32 billion, an increase of 11 percent from Q2 the previous year. The overall number of total bets and/or spins increased 12 percent Year-on-Year (YoY), reaching a new peak for the third consecutive quarter of 25.2 billion, whilst the average monthly active accounts2 in the quarter increased 8 percent
  • real event betting GGY increased by 6 percent YoY to ÂŁ453 million. The number of bets decreased 10 percent, while the average monthly active accounts in Q2 increased 9 percent
  • slots GGY increased 16 percent to ÂŁ680 million YoY. The number of spins increased 13 percent to 23.3 billion while the average monthly active accounts in Q2 increased 16 percent to 4.4 million per month. Although this is a new peak for GGY in this dataset for the slots vertical, it should be noted that one operator has re-classified some of its products into the slot vertical this quarter, which has had an impact on the vertical data
  • the number of online slots sessions lasting longer than an hour increased by 9 percent YoY to 10 million. The average session length remained at 17 minutes. Approximately 6.1 percent of all sessions lasted more than one hour compared to 6.6 percent in Q2 the previous year. The number of spins per session has fallen from 147 to 142 YOY, whilst the GGY per session has fallen from ÂŁ4.20 to ÂŁ4.13 in the equivalent timeframe
  • LBO GGY decreased by 1 percent to ÂŁ533 million in Q2 2024 to 2025, compared to the same quarter last year, while the number of total bets and spins decreased by 0.1 percent to 3.1 billion.
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Industry News

Petra Maria Poola Joins Xace as Group Commercial Director

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Xace has announced that Petra Maria Poola has joined the company as Group Commercial Director.

Petra brings a wealth of experience from the iGaming industry having formerly held roles at several iGaming companies such as Yolo, Relax Gaming and SiGMA. She will lead the commercial growth of Xace and its group companies, including crypto and iGaming focused xda.io, helping to drive strategic initiatives across banking, fintech and iGaming solutions.

In her new role, she will mainly oversee the growth of the group’s sales, marketing and account management functions, ensuring a cohesive strategy that supports Xace’s ambitious expansion plans.

“I am incredibly excited to start this new chapter with Xace, and work alongside such a talented team and management. Transitioning into the fintech space, while still connected to iGaming, presents an exciting opportunity for growth and learning. I’m looking forward to applying my expertise to help Xace and its group companies achieve new heights commercially, while gaining deeper insights into the fast-evolving world of fintech,” said Petra Maria Poola.

Reuben Abel, CEO of Xace, said: “Petra’s extensive background in the iGaming sector, combined with her commercial acumen, makes her a valuable addition to the Xace team. She will play a crucial role in expanding Xace’s market presence and enhancing its suite of services tailored to the specific needs of the iGaming and fintech industries.”

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