Introduction

The global casino, sports betting, and iGaming industry (collectively referred to as the gambling  industry) is expanding rapidly, with global industry revenues reaching $347 billion and the total value of player wagers reaching $4.2 trillion in 2024, driven by increasing  digital adoption and regulatory shifts. The U.S. has seen exponential growth following the legalization of sports betting in 2018, with online operators capturing a significant share of this growth. In the Asia-Pacific region, land-based casinos continue to dominate, while demand for sports betting and iGaming is surging—particularly in Southeast Asia.

Despite this growth, gambling merchants face payments-related challenges that impact revenue generation, customer engagement, and customer retention. Payments in gambling are categorized as high-risk due to fraud and chargeback concerns, resulting in high decline rates. Many payment processors either avoid serving these merchants or charge higher fees. Gambling merchants also must deal with slow payouts and monitor transactions for suspicious activity that could indicate money laundering – all part of AML and KYC compliance .

This article provides an overview of the 2025 payment landscape for gambling merchants and explores opportunities for both merchants and payment processors to overcome these challenges, improve efficiency, and differentiate through payments.

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A Fast-Growing Global Market

The global gambling industry is expanding rapidly, with total revenues reaching $347 billion in 2024, recovering since its pre-pandemic peak in 2019 and growing 18% year-over-year  (2020 to 2024). This acceleration is fueled by advancements in technology, payments, and merchant business models, which are increasingly incorporating retail-style loyalty programs to enhance customer retention.

The global gambling industry remains highly concentrated in key markets, with the U.S. leading with 24% of total revenues. Macau, the world’s premier casino destination, follows with 8% of global gambling revenues, reflecting its strong recovery post-pandemic. Major European markets—including Italy (7%), the UK (6%), France (3%), and Spain (3%) continue to hold significant shares, while Canada  (5%) and Australia (4%) also contribute meaningfully. The rest of Europe collectively accounts for 20% of global revenues, demonstrating the region’s diversified gambling landscape, while the rest of the world contributes another 20%, highlighting emerging markets’ growing influence. Absolute revenue growth will largely depend on regulatory developments, digital adoption, and shifting player preferences across these regions.

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Several key factors are shaping the industry's growth:

1. Shift to Mobile Gambling

Online gambling has long been the fastest-growing segment of the industry, but the proliferation of mobile apps has further accelerated this trend. Players can now place sports bets and play casino games instantly on their smartphones, creating a seamless and engaging experience.

2.  Payment Options Expectations

Consumers expect the same payment options that they are familiar with at checkouts of gambling merchants. These new payment methods are transforming the gambling experience. Players can either add funds to a stored-value wallet or place bets directly via their preferred payment method. The impact of reducing payment friction is well documented across other industries, and the same applies to gambling—smooth deposits and withdrawals enhance player engagement.

Equally important is the availability of fast and flexible withdrawal options. Players expect to cash out using their preferred method, and instant access to winnings can be a key differentiator for operators. Supporting a broad range of pay-in and pay-out options is also essential for international expansion, where local payment preferences vary widely.

3. Loyalty Programs

Major gambling operators have built sophisticated loyalty programs to drive engagement and increase player spending (such as Caesars Rewards, MGM Rewards, Golden Nugget, Fanduel, and Dynasty). Retaining players and incentivizing higher bet volumes are crucial revenue drivers, particularly for operators focused on average revenue per user (ARPU).

4. Regulatory Easing

While land-based casinos remain the largest segment of the industry—historically concentrated in a few key locations—regulatory changes have significantly expanded the total addressable market. The gradual legalization of sports betting (in the US) and iGaming across Europe and Asia Pacific,  even in markets without a strong casino presence, continues to drive industry growth.

The Role of Payments in Deposits and Payouts

Gambling revenues generally correlate to the handle (the total amount wagered by players) and payouts (winnings paid to players). The scale of these transactions is staggering—players place about $4.2 trillion in bets annually, while gambling operators process about $3.8 trillion in payouts each year .

To grow revenue, gambling merchants focus on increasing the handle through seamless deposits, acquiring new players, and retaining existing ones. At the same time, payout efficiency plays a crucial role in player satisfaction—delays or limited withdrawal options can damage trust and lead to customer churn. Understanding the role of payments in both deposits and payouts is essential for operators seeking to optimize their business models.

Deposits

While cash remains relevant for land-based casinos, online gambling has seen significant evolution in payment acceptance. Debit cards, bank transfers, and e-wallets (e.g., Neteller, Skrill) remain perferred options, with alternative payment methods like cryptocurrencies, instant bank transfers, and prepaid gaming cards continue to gain traction. Furthermore, certain markets have dominant local payment methods, such as Alipay and WeChat Pay in Asia-Pacific.

Pain points that gambling merchants face with deposits:

1. High Decline Rates – Transactions are often flagged as high-risk, leading to deposit rejections, which frustrates players and reduces betting volume.

2. Regulatory Restrictions – Some countries restrict certain deposit methods, such as credit cards, making it harder for players to fund accounts.

3. Fraud and Chargebacks – The gambling industry sees higher-than-average chargeback rates, creating disputes and financial losses for merchants.

4. Slow Fund Availability – Players expect instant access to their deposits; delays reduce engagement and betting activity.

5. KYC and AML Requirements – Although crucial for compliance, rigid verification processes can disrupt the user experience.

Gambling operators should focus on expanding payment options and including alternative payment solutions that reduce decline rates and face fewer regulatory hurdles than card payments. There are also several fraud prevention tools that leverage AI to optimize acceptance without compromising on risk, as well as chargeback management providers that have capabilities to mitigate disputes and fight back on fraudulent attempts at disputing payments.

Payouts

In land-based casinos, common payout methods include cash, checks, and bank transfers for large withdrawals. Online gambling, however, has introduced faster and more diverse options. E-wallets and prepaid cards are widely used for fast access to winnings, while cryptocurrency withdrawals are growing in popularity due to speed and cost efficiency. Some regions also have instant payment rails that gambling operators can leverage for near-instant withdrawals.

Pain Points that gambling merchants with payouts:

1. Withdrawal Speed – Delayed payouts reduce player trust and create frustration. Fast payout options, such as instant payments, often come at an extra cost.

2. KYC/AML Verification – Operators may delay withdrawals until additional identity verification is completed, adding friction to the process.

Having a diverse range of withdrawal options is now significantly easier for gambling merchants. Between cards, bank transfers, wallets, prepaid, instant transfers, and crypto, players have flexibility in choice, improving retention. Push-to-card solutions by Visa & Mastercard provide near-instant payouts at a lower cost than traditional bank transfers.

Automated KYC/AML verification using AI can speed up compliance checks and reduce payout friction for the player.

Why Gambling Operators Must Develop a Payments Strategy

Payments are central to the player experience and directly impact gambling operators' revenues. A seamless deposit and withdrawal process is essential for acquiring and retaining players. Those who optimize payments gain a competitive edge, increasing conversion rates and player satisfaction.

Furthermore, the distinction between gambling and video games is becoming increasingly blurred, as features like loot boxes and in-game microtransactions—such as purchasing “skins” and “weapons” with real-world value—continue to fuel debate. Concerns over their potential to introduce gambling-like mechanics to younger audiences are driving increased regulatory scrutiny. This shift is likely to lead to fundamental changes in how payments are processed for video game merchants, requiring a reassessment of payment flows and strategy to mitigate declines and potential revenue losses caused by evolving user payment experiences.

At EDC we help merchants navigate regulatory complexities, optimize payment acceptance, and implement frictionless payout solutions. Whether through market insights, compliance guidance, or payments orchestration, we empower gaming operators to drive revenue growth and enhance customer experience.

For operators looking to streamline their payment processes, EDC provides tailored consulting services to build a secure, scalable, and seamless payment ecosystem.

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The content of this article does not reflect the official opinion of Edgar, Dunn & Company. The information and views expressed in this publication belong solely to the author(s).