Gaming FinTech Mazooma has formed a partnership with FinTech data network Plaid to bring an instant transfer solution to the iGaming and sports betting industry, according to a Tuesday (Nov. 10) press release.
“Partnering with Plaid, Mazooma will maximize conversion for our merchant clients by making it even faster and easier for players to fund their accounts,” Mazooma Chief Operating Officer Dave Roe said in the announcement.
“Plaid’s optimized user interface and U.S. bank connections are an ideal complement to Mazooma’s ACH processing platform, risk management features and compliance protocols,” he added.
The new payments tool is now available for deposits and withdrawals on BetMGM’s cashier. A launch for Borgata and Party Poker is planned for the coming weeks.
Even with hiatuses among the NFL, NBA, NHL, and MLB, the COVID-19 pandemic has sparked accelerated growth in the online gaming and sports wagering industry, which has been steadily advancing since the PASPA repeal in 2018.
About 75 percent of U.S. states have legislation pending to legalize sports betting, according to the release, which notes sports betting is legal “in one form or another” in 24 states.
“Partnering with Mazooma will help streamline account funding and reduce fraud for gaming companies and their players,” said Lowell Putnam, head of partnerships at Plaid. “Plaid’s consumer-permissioned data network will also support Mazooma’s merchant customers with state expansion initiatives as the industry continues to grow and can help support responsible gaming initiatives for consumers.”
Mazooma, a gaming industry leader for more than 15 years, is headquartered in Atlanta, Georgia and was founded in 2009. Plaid, founded in 2012 in Silicon Valley, was acquired by Visa earlier this year.
ACH comprises about 35 percent of gaming industry payment volume, the release said, topping $150 billion for sports betting alone.
Plaid has been aggressively connecting more financial institutions and FinTechs, with instant payments and the ability for banks to build out their own APIs.
In a PYMNTS interview last year, George Connors, senior vice president of gaming solutions at Fiserv, said that it’s just a matter of time before more states see the benefits in legalizing online gaming and sports betting.
The lockdown of physical casinos amid COVID-19 helped accelerate digital demand for gaming and betting. New Jersey’s Division of Gaming Enforcement said in May that internet gaming win increased 118.6 percent to $80 million in April compared to $36.6 million in 2019.