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Paysafe says it supports gaming brands in 18 states and Washington, D.C.
Dreamstime
Shares of Paysafe were higher after the online payments company said it is expanding into New York’s regulated sports-betting market.
The stock (ticker: PSFE) was rising nearly 6% to $3.67 on Wednesday.Paysafe’s payment gateway will be used to process online deposits and payouts for players in New York with mobile sports-betting brands, a news release said. New York’s Gaming Commission recently approved licenses for online sports betting operators such as
DraftKings
(DKNG) and
Caesars Entertainment
(CZR).
Last year,
Paysafe
went live with operators or received licensing in the states of Arizona, Connecticut, Louisiana, Michigan, Montana, Virginia, and Wyoming. The company supports gaming brands “in a total of 18 states plus Washington, D.C.,” the company said.
The UK-based end-to-end mobile solution provider operates in three segments: integrated processing, digital wallets, and eCash solutions. Late last year, it partnered with Fubo Gaming, offering gamers the ability to use its eCash capabilities along with digital wallets. ECash allows people without bank accounts to pay for online games using cash paid at retail stores like 7-Eleven and Dollar General.
“We continue to believe online gambling is sufficiently complex that it will be processed primarily by specialists such as PSFE,” Susquehanna analyst James Friedman told Barron’s, pointing to security features like anti-money laundering and “know your customer,” which are unique to Paysafe and its core competencies.
Risks to an operator in online gambling are high, so an experienced provider is needed, the analyst explained. Currently, Paysafe provides digital merchant services for
DraftKings
,
Caesars, and
PointsBet Holdings
.
Paysafe is set to report its fourth-quarter earnings on Feb. 10, according to FactSet. It reported sales of $354 million for the third quarter, below analysts’ forecasts of $370.6 million.
For the full year, the company has lowered its sales forecast to a range of $1.47 billion to $1.48 billion, from $1.53 billion to $1.55 billion.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com
