Paysafe Research: Crypto Payments to Transform US Online Sports‑Betting – A new study from payments platform Paysafe reveals that 83 % of U.S. bettors would use cryptocurrency for sportsbook deposits where regulation allows, signaling a potential shift in how digital assets are integrated into the online gambling ecosystem.
What the study shows
The “All the Ways Players Pay: Crypto Edition” report surveyed active bettors across ten states, including Colorado and Wyoming, the only jurisdictions that currently permit crypto deposits. In those markets, 59 % of Colorado bettors and 45 % of Wyoming bettors have already funded a wager with a digital asset. Nationwide, 64 % of active bettors own cryptocurrency, and 92 % of New York players expressed interest in using it for deposits.
Why crypto matters to sportsbooks
When permitted, crypto payments would rank among the top three payment methods for online sportsbooks, trailing only digital wallets (55 % preference) and debit cards (50 %). In New York, crypto is the second‑most‑preferred option after wallets (54 % vs. 59 %). The study also notes that 85 % of respondents would like to cash out winnings in crypto—an option not yet legal anywhere in the U.S.
Implications for the broader payments stack
The data underscores a broader trend identified by Gartner, which predicts that by 2027, 30 % of digital‑first payments will involve blockchain‑based solutions. For operators, integrating crypto isn’t just a novelty; it could become a decisive factor in player acquisition and retention. The report finds that 71 % of bettors say crypto transactions would improve their overall betting experience, while 71 % would abandon a sportsbook after a poor crypto payment experience.
Competitive landscape
Traditional payment rails—credit cards and bank transfers—still command 37 % preference each, suggesting that a hybrid approach will dominate the near term. Compared with rivals such as Stripe and PayPal, which have launched limited crypto checkout pilots, Paysafe’s focus on a dedicated “crypto‑ready” sportsbook offering could give it a first‑mover edge in states that soon legalize digital‑asset deposits.
Enterprise marketing takeaways
- Product positioning – Emphasize seamless crypto deposits and withdrawals as a differentiator in go‑to‑market messaging.
- Risk mitigation – Highlight robust compliance and fraud‑prevention layers to assuage regulator and consumer concerns.
- Customer experience – Invest in UI/UX that mirrors the speed of digital wallets to avoid churn, especially in high‑sensitivity markets like New York.
Regulatory outlook
While only Colorado and Wyoming currently allow crypto deposits, Illinois and Virginia have sign‑off mechanisms that could be activated pending state‑level guidance. The report warns that operators must monitor evolving statutes, as a misstep could trigger the 80 % brand‑switch rate observed among New York bettors who experience a subpar crypto transaction.
Future of embedded finance
Embedded finance platforms are already experimenting with tokenized assets for instant payouts. As crypto becomes a mainstream payment method, we can expect tighter integration with open‑banking APIs, enabling real‑time conversion between fiat and digital currencies—a development that could reshape settlement cycles for sportsbooks and other high‑velocity merchants.
Market Landscape
The U.S. sports‑betting market, valued at roughly $30 billion in 2023, is projected by McKinsey to grow at a 15 % CAGR through 2028. Concurrently, IDC forecasts that blockchain‑enabled payments will capture $12 billion of that growth, driven largely by consumer demand for speed, privacy, and lower transaction fees. Paysafe’s research aligns with these macro trends, suggesting that operators who embed crypto payment options may capture a disproportionate share of new betting volume, especially as more states adopt permissive regulatory frameworks.
Top Insights
- High appetite: 83 % of surveyed U.S. bettors would use crypto for sportsbook deposits where legal, indicating latent demand far outpacing current supply.
- Retention lever: 71 % say crypto transactions would improve their betting experience, while the same share would quit after a poor crypto payment, highlighting experience as a churn risk.
- Competitive parity: Crypto ranks third after wallets and debit cards, but still trails traditional cards in states without clear crypto guidance, urging a hybrid payment strategy.
- Regulatory catalyst: States like Illinois and Virginia possess “permission‑by‑request” frameworks that could unlock crypto deposits without new legislation, accelerating market adoption.
- Enterprise impact: Marketing teams must reframe value propositions around seamless crypto onboarding, compliance assurance, and instant settlement to stay ahead of rivals.
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