Gambling is used to denote games of chance aimed at getting a cash prize or other material values. Usually, the crucial role is on chance or luck, but sometimes it requires gamblers to be skilled as well.
Payment processing is an essential part of any online business, as it allows to accept payments and make payouts to customers. Without having a reliable processing partner, it is impossible to accept payments in casinos from customers or pay out winnings, prizes, or bonuses.
The gambling industry is traditionally a high-risk one from the point of view of banks and payment systems. Therefore, it might sometimes be challenging to open a MID for an online casino. Let’s clarify the features of payment processing for this industry, its legal nuances, and the intricacies of accepting online payments.
Payment processing is a must regardless of business model or size. Before offering any entertaining services in the gambling industry for customers and accepting payments or making payouts, business owners have to open a merchant account. This will allow the business to pay out the prizes and process other payments.
The procedure of opening a gambling merchant account is sometimes quite challenging, for such accounts are usually considered to be high-risk due to obvious reasons. Such businesses are usually big and have a substantial amount of chargebacks and fraud. Furthermore, they imply a high likelihood of money laundering. So, the whole deal requires a thorough selecting of a payment processor.
Considering the activities of gambling projects, opening a merchant account has its own peculiarities. A merchant can only be opened for a licensed legal entity. Here are the standard steps:
create a website and integrate certified software;
choose a reliable bank and open an account;
prepare a package of documents;
choose a payment processor and apply to open a merchant account;
sign an agreement and integrate a tool for accepting payments into your site.
In order to legally accept payments, many operators request an impressive package of documents from their clients in the process of registration. This is the company’s constituent documentation, ownership confirmation, founders’ passport details, a bank statement from the company for the last 3-6 months, and statements from the owners' accounts. The list differs depending on the operator, so clarify the details with the one you choose.
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As far as gambling merchant accounts are classified as high-risk, the main requirement for the payment processor is to support such types of accounts. Gambling merchant accounts processors have to spend a lot of resources to provide the processing of transactions for a gambling website. Not everyone is ready for this. Gambling restrictions in many countries also matter. Many banks refuse to cooperate with gambling projects in order to eliminate the risk to reputation and sanctions from payment systems.
While choosing a gambling payment processing partner, pay attention to the following criteria:
bank card payments processing (Mastercard, VISA, American Express, etc.);
ability to offer local payment methods;
supporting payments with digital and cryptocurrencies;
accepting payments by subscription (recurring payments);
antifraud filters and transfer of responsibility for chargebacks (at least fraud monitoring and support for the 3D Secure protocol);
easy integration with major gaming platforms (ideally, it should be possible to implement the payment operator API).
The easiest way to open a merchant account for gambling is a specialised system — for example, a payment aggregator. The requirements for merchants are less stringent here. In addition, it is possible to accept different types of gambling payments and conveniently manage all transactions.
Our payment orchestration platform allows online businesses to accept payments and make payouts in more than 400 payment and payout methods. One integration with Corefy allows you to connect dozens of providers needed for your audience or specific business needs in one click. Book a demo and see how the platform works and find out more.
