James McWilliams, Product Lead at Stats Perform, has spent close to a decade innovating payments technology in the US market. Over that time, he has seen the same issue persist across the industry: many sportsbooks still rely on payout models that are expensive when funds leave, expensive again when users redeposit, and slower than customers now expect. He explains how the new SP Payout Card is built to fix that, giving operators a more cost-effective payout model while helping users access funds faster.
Users waiting days to access their winnings. Rising payment processing costs. Customer complaints tied to slow withdrawals. If you run a sportsbook, DFS, or iGaming platform in the US, none of that will sound unfamiliar.
There is also clear evidence that this affects how people choose where to play.
Paysafe’s research found that 41% of US bettors said quick and easy payouts were the most important factor when choosing a sportsbook.
And still, most US sportsbooks, DFS, and iGaming platforms still handle payouts through a process that has barely changed in years.
A user wins, requests a withdrawal, and then waits for the funds to become usable. Depending on the payment method, that can still mean 24 to 48 hours before the money actually reaches the user’s bank account. While that is happening, you are paying to move money out of your platform, and when some of those funds come back through another deposit, there is often another processing cost attached on the way back in.
It is a US-only white-label virtual debit card built specifically for sportsbook, DFS, and iGaming payouts. Instead of waiting for a bank transfer to clear, users receive immediate access to their winnings on a card, which is instantly spendable.
That change improves the withdrawal experience for users straight away. The bigger difference appears when you look at what it does to the economics behind the payout cycle.
The payout loop is expensive as you scale
Money leaves your platform and carries a cost with it. When some of those funds return through a re-deposit, more costs usually follow. Aggregate this across thousands or millions of transactions, and payout fees and redeposit fees become a meaningful operating expense that requires close attention and careful management.
We developed the SP Payout Card to solve a major flaw in the economics of redeposits.
Redeposits through SP Payout Card are charged at a 50–75% discount compared with traditional interchange costs, which significantly lowers the cost of bringing funds back into your sportsbook. Once that saving is applied at scale, the economics of the payout cycle begin to look very different.
The time between a withdrawal being requested and the funds becoming usable has been a major focus for payments teams for years. The problem is not that the market has ignored it. The problem is that there have been very few good ways to remove the delay. And if quick and easy payouts are the most important factor for US bettors when choosing a sportsbook, the speed at which funds become usable has a direct effect on whether your product gets chosen.
The SP Payout Card removes that delay by making winnings immediately available on the card, which means your users can access their funds straight away rather than waiting for the banking system to catch up.
Most operators know that building a meaningful rewards program that rewards customers and supports behavioral change requires significant product work, ongoing management, and continued investment. It becomes another internal system that must be thoughtfully designed, launched, and maintained.
SP Payout Card has a built-in, plug-and-play loyalty programme as standard.
Users (your customers) can receive 1.5% cashback on everyday spending and up to 25% cashback on digital gift cards across more than 700 retailers.
For SP Payout Card customers, that means the card brings a ready-to-use retention lever that you can start benefitting from day one.
Payment integrations don’t need to be a long engineering project
Payment technology often looks appealing until the conversation turns to implementation.
SP Payout Card has been engineered to avoid this problem.
The majority of sportsbooks will be able to integrate the payment method in two to four weeks.
When implementation takes as little as four weeks, there’s no reason to keep hampering your customers with legacy payment workflows.
The traditional payout process still works – but it’s now time to seriously question if it’s good enough.
SportsContentCo is the official US reseller of Stats Perform’s premium sports betting products. If you’re a licensed US sportsbook, DFS, or iGaming operator interested in the SP Payout Card, get in touch to discuss how it can support faster payouts and a more cost-effective payments model.
