PayPal is now here for DraftKings Sportsbook, and that’s a good thing for the New Jersey sports betting app that is increasingly coming up against more competition.
PayPal is here
For weeks, DraftKings Sportsbook had the online NJ sports betting market to itself.
During that time, customers looking to put down wagers with legally operating sportsbooks in New Jersey didn’t have any other options. But DraftKings, despite being first to market, didn’t have much in the way of depositing options.
Basically, you had Visa, MasterCard and bank transfer. (You could also transfer money from a linked daily fantasy sports account, once you played through the money deposited once.) And when that was the case, its lack of payment options was not a problem.
Now, however, there are five more sportsbook apps that are active in New Jersey, with more on the way. And a few of those launched with PayPal and other depositing methods.
The problem with no PayPal
If you’re familiar with the world of online casinos in New Jersey, a lack of options for depositing can be a problem for a new site or app. Many banks will decline any transactions dealing with online gambling, even though it’s legal in New Jersey.
DraftKings was dealing with a lot of frustrated customers who wanted to bet, but couldn’t get money online directly.
FanDuel Sportsbook — one of DraftKings’ competitors — outlines the pretty directly with a FAQ on its site:
While most major banks allow online wagering, the following will decline transactions with online wagering companies:
- Bank of America
- Capital One
- Wells Fargo
- TD Bank
- Union Bank
- Huntington Bank
- Most prepaid cards
That includes some very big banks that also issue credit cards.
Being first only helped for so long
DraftKings beat everyone, by weeks, to offering online sports betting. But that first-mover advantage wasn’t going to carry DraftKings to a lead in the NJ sports betting industry forever.
If it was going to compete, adding a payment option like PayPal was a near necessity. Three other online sports betting sites — FanDuel, Caesars online casino and SugarHouse Sportsbook — all had PayPal live already.
Now the playing field will be a bit more level. We get the first online sports betting revenue and handle numbers this week in New Jersey. But we’ll see how the competition is shaking out better once the numbers are in from September, when DraftKings was finally operating against challengers.