Kamran Hedjri, Chief Executive Officer, PXP Financial has mapped out his key predictions for payments in the US as the gambling industry continues to evolve.
The iGaming and Sports Betting sector is a multi-billion-dollar industry with global reach that has found much success across Europe. Yet despite this, for the longest time it was incredibly difficult for gaming operators to run in the United States of America (US) as laws and regulations limited, or outright prevented, forms of gambling. Fortunately, since 2018 regulators have slowly eased up on restrictions and this has created many opportunities for both local and foreign companies to begin operating in the region.
While there are lots of opportunities for success in the US, it is not as simple as moving into the country and setting up shop. There are several regulations still in place across all 50 US states, and gaming operators need to ensure their ability to take transactions from players is not impeded by this. The worst thing an operator can do to its player base is prevent them from being able to play, after all. This is where PXP Financial has provided a major benefit, helping new and old operators alike with their payment’s infrastructure and security.
PXP Financial has been operating within the US for over eight-years and its team has become experts within the sector over this time, as evidenced by the success throughout 2021.
By the end of 2020, PXP Financial were in a good position to continue its growth journey in the region. The company was operating in nine US states and had added three high-profile clients to its portfolio over that year (BetMGM, Penn Interactive and Tipico). In 2021, PXP Financial’s stake in the market grew exponentially and allowed it to become a key player.
Adding to this success, Kamran Hedjri, CEO of PXP Financial, shares his reflections on 2021 and predictions for the industry in 2022.
PXP Financial in the US – 2021
As 2021 comes to a close, PXP Financial has now established a presence in 18 new US states, a nine-state increase from its position in the previous year. PXP Financial’s services went live in its most recent states, New York, Wyoming and Arizona, almost immediately as the regulations went live to allow them to. This was only possible because PXP Financial’s experience operating in the country allowed them to be fully prepared to go live at a moment’s notice. This has been a major benefit to its most recent partners – EveryMatrix and Shift4 – as well as others that are currently in development behind the scenes.
In order to ensure all its customers are finding success in the iGaming and Sports Betting market, PXP Financial has been performing an analysis of market trends and ensuring its solutions are updated accordingly. It is by doing this that PXP Financial was able to help its partners meet their growth goals and find success during major sporting events, such as the Super Bowl. Everything from improved / new UI features that are more optimised for mobile to an updated cage deposit solution – PXP Financial has been working hard this year to provide a best-in-class service for its customers.
Now that 2022 is here, PXP Financial is continuing to look forward and ensure its technology addresses some of the major concerns from operators with how the market is changing. These are just some of those concerns:
- Prediction 1 – an uptake in regulation
While many states have been updating their regulations to make iGaming and Sports Betting legal, there are 50 states across the US and it’s unlikely that all of them will make a complete turnaround by 2022. With that said however, we do expect the turnaround from states still unsure, to happen at a much faster rate than in previous years.
This is largely down to regulations being workshopped by other states and reaching a condition where they are more acceptable to a wider council. As the hesitant US states begin to see regulations working effectively in the states that have already opened up, they will also begin to lessen restrictions.
The process will ultimately be a lot faster as well, as these states can easily adopt what has worked elsewhere and make small amends instead of workshopping new regulations from scratch. There will be more case studies for the regional regulators to work from and this will speed up the process.
So, while we don’t expect to see all 50 states open to iGaming and Sports Betting by the end of 2022, we do expect to see a larger portion of US states adding new regulation in support of the industry than ever before. This is something any company involved in the sector needs to be ready for.
- Prediction 2 – bigger investments lead to better tech
As this sector is growing and proving to be a success, this will draw the attention of investors who will be keen to take part in supporting the growth of the industry. This will naturally result in many of its upcoming and currently key players receiving funds that will support their growth – and one way we will see this growth take form is with new technology.
Innovation is constantly happening across all technology sectors, payments and otherwise, and some of this technology will support in streamlining the process for players to participate in iGaming and sports betting, as well as offer new ways to play. We anticipate that a slew of new investments will lead to the adoption of several new technologies to this sector, and that in turn will lead to further investment.
- Prediction 3 – iGaming continues to boom
Over the COVID-19 pandemic, the industry saw a huge boost in iGaming as players were forced online. Even though lockdown has subsided, and many in-person casinos have reopened, the revenue made from iGaming alone has not decreased. In fact, it has increased along with revenue across the industry as a whole and the will certainly continue its upward trajectory throughout 2022.
iGaming and Sports Betting is a thriving industry currently and has proven to be so globally for many, many years. Over the last few years, the US has been given the opportunity to experience this success and it is only going to rise further. We at PXP Financial will be there to support businesses at every step, both if they are existing operators hoping to expand into new states or new entrants into the region.