For the seventh anniversary of PASPA’s repeal, Paysafe’s Zak Cutler reflects on the role of payments in growing the U.S. sports-betting market as well as the Latin American space, and how the Americas’ transactional future could play out.
Seven years ago this month, the U.S. Supreme Court repealed PASPA, the federal ban on sports betting. It proved to be a pivotal moment for the industry’s growth in not only the U.S. but also in Latin America.
Since May 2018, over 30 U.S. states have authorized regulated online or mobile sports betting, while major Latin American markets like Peru and, most recently, Brazil, have done the same. These markets share something else in common: payments have been instrumental in driving growth due to their strong correlation with player acquisition and retention. And the Americas’ future looks set to be just as tied to how bettors like to pay when they play.
Looking back: payments, players and growth
Following PASPA’s repeal, Paysafe launched our ‘All the Ways Players Pay’ research series in 2019. A key takeaway from early editions of the report was the close relationship between payment factors and how bettors select a sportsbook.
This trend remains constant in our 2025 report, with U.S. players continuing to prioritize streamlined payouts (a priority for 41%) above all else when choosing a book. Ease of withdrawals trumped non-payment factors like brand trust (34%), promotions and bonuses (27%), good odds (25%), user experience (19%), and sports markets (17%).
Other payment factors continue to be almost as important in U.S. player acquisition. Three out of 10 bettors (29%) prioritize the range of payment options when selecting a sportsbook, with 27% emphasizing quick and easy deposits.
This acquisition trend is also evident in Latin America. In Peru, where the regulated market launched in early 2024, brand trust is the top factor in sportsbook choice – prioritized by 38%. However, payment criteria are almost as crucial: from fast payouts (a priority for 32%) and rapid deposits (28%) to the brand’s range of payment options (21%).
And retention? A U.S. trend we’ve seen since the sports-betting market emerged is just as pronounced today. Seven out of 10 players (69%) won’t return to a sportsbook after a bad experience with payments.
When it comes to minimizing churn, there’s even more payment pressure on Peruvian operators, with 86% of players likely to abandon a sportsbook if things go awry at the cashier.
Looking forward: payment choice, APMs and localization
As touched on, whether a sportsbook is trying to convert a player in Lima or Louisiana, maximizing payment options is essential. Player preferences are diverse, and they look set to diversify further in the future.
In the U.S., cards are still king, especially debit cards (a top three preference for 49%), with certain states such as Massachusetts and Tennessee banning credit cards. That said, alternative payment methods (APMs) like digital wallets are increasingly rivalling cards, with wallets a top three preference for 44%.
Other APMs like pay-by-bank solutions (a preference of 24%) and online cash (20%) have significant popularity, while local payment methods (LPMs) available only in the U.S., such as Venmo, enjoy niche demand (16%).
There’s a similar dichotomy in Latin America between traditional and alternative payments. In Peru, debit cards are the top preference (of 56%), but APMs are challenging this. Digital wallets are preferred by 33% of Peruvian bettors, with eCash almost as popular (25%), which is unsurprising in a country and region where cash still dominates offline retail.
These takeaways should be enough to convince operators to integrate a full suite of APMs and country-specific LPMs into their cashiers. Appetite for digital wallets, eCash, pay by bank, and other APMs is only set to grow, with 57% of U.S. players expecting to wager more with alternative payments over the next two years. Interest is even higher in Peru (81%) and other Latin American markets like Colombia (85%) and Ecuador (80%).
Among APMs, players express strong interest in pay-by-bank solutions powered by open banking, which enable bettors to log-in to their online bank account directly at the cashier, to fund wagers and also to cash-out. Combining convenience, speed and security, it’s no surprise that 63% of U.S. players want pay-by-bank to be more widely available over the next two years.
Latin American operators should also be prioritizing the integration of pay-by-bank products. Demand from players even exceeds the U.S., with 80% of Peruvians, and 79% of both Mexicans and Colombians wanting this solution to be widespread at cashiers within two years.
Brazil and beyond
Of course, in two years’ time we’ll be counting down to 2028 and the 10th anniversary of PASPA’s repeal. By that point, we will better understand the payment preferences in the massive new Brazilian market, which launched in January of this year, just as Paysafe issued our 2025 research report.
Across the Americas, huge change is afoot in online sports betting, though the enduring importance of payments in maximizing player acquisition and retention remains constant. Operators that start upgrading their cashiers today with a full suite of APMs – from pay-by-bank solutions, digital wallets and eCash to popular local options – will be celebrating future PASPA-repeal anniversaries in not only style but also with strength.
Paysafe will be exhibiting at Stand D100 of the SBC Americas Summit from May 13-15, 2025
