A proactive approach towards potential challenge is what fantasy sports startups need
Even as fantasy sports Industry continues to grow exponentially in the past decade emerging as a clear winner, there are still battles to be won at various fronts. While fantasy sport is no more an amateur segment what with the introduction of daily format of the game, the legality of the business is still being debated. However, the US Government and 45 out of 50 US states consider fantasy sports as a skill-based game and allow participation in these games. Moreover, there have been some serious efforts in the past from FSTA (Fantasy Sports Trade Association) and other stakeholders to legalize fantasy sports in the remaining 5 states of Arizona, Iowa, Montana, Louisiana and Washington.
What’s concerning is that this debate and the legal complexity have raised a bigger issue that demands immediate attention, especially for the sake of startups. The problem is unwillingness on the part of Payment Processors in supporting fantasy sports.
In the recent past, payment processing companies like Instapay, PayUMoney have stopped entertaining applications from fantasy sports startups. Even PayPal has been very restrictive towards the business and categorizes games of skill under prohibited gambling activities where a pre-approval merchant account is required. Most acquiring banks classify fantasy sports as high risk merchants and have a tedious and complex process for approval.
Vinfotech works very closely with Fantasy Sports Startups helping them not only with design and development services but also providing expert advice on various other aspects of business. So our research from the last few months yielded a list (not necessarily in that order) of fantasy sports payment processing companies who offer payment services for fantasy sports startups, hence supporting the industry.
|Payment Processors||URL||Services in|
|Teccpay or Merchants Bancard Network||www.teccpay.com||USA/Canada/UK|
|FantasySportsPayments or Choice Merchant Solution||www.fantasysportspayments.com||USA/Canada|
Please note that the above mentioned names are not the only ones offering payment processing for fantasy sports. The merchants looking for payment solution for their application need to follow the guidelines setup by these companies while applying for a merchant account with them.
With player entry fee Projected to grow to $31 billion by 2020, payment solutions are of great importance and we have attempted to cater to this challenge. Vinfotech specializes in consulting, design and development of custom fantasy sports applications based on the client’s unique requirements. And our services don’t just end there. We constantly dig facts from the industry and understand trends in the US markets in order to equip our clients with the power of information. We would be happy if you share your thoughts and suggestions here.
Vinfotech creates world’s best fantasy sports-based entertainment, marketing and rewards platforms for fantasy sports startups, sports leagues, casinos and media companies. We promise initial set of real engaged users to put turbo in your fantasy platform growth. Our award winning software vFantasy™ allows us to build stellar rewards platform faster and better. Our customers include Zee Digital, Picklive and Arabian Gulf League.
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