The online payments company Paysafe is expanding into New York’s regulated sports-betting market and plans a partnership with the cryptoocurrency exchange Binance.
The stock (ticker: PSFE) rose in early trading, but then slipped back to the breakeven line, at $3.46. Broadbased gains for stocks gave way to losses as investors digested the latest news about the Federal Reserve’s plans to tighten monetary policy.
Paysafe’s payment gateway will be used to process online deposits and payouts for players in New York with mobile sports-betting brands, a news release said.
New York’s Gaming Commission recently approved licenses for online sports betting operators such as DraftKings (DKNG) and Caesars Entertainment (CZR).
Last year, Paysafe went live with operators or received licensing in the states of Arizona, Connecticut, Louisiana, Michigan, Montana, Virginia, and Wyoming. The company supports gaming brands “in a total of 18 states plus Washington, D.C.,” the company said.
The UK-based end-to-end mobile solution provider operates in three segments: integrated processing, digital wallets, and eCash solutions.
Late last year, it partnered with Fubo Gaming, offering gamers the ability to use its eCash capabilities along with digital wallets.
ECash allows people without bank accounts to pay for online games using cash paid at retail stores like 7-Eleven and Dollar General.
“We continue to believe online gambling is sufficiently complex that it will be processed primarily by specialists such as PSFE,” Susquehanna analyst James Friedman told Barron’s, pointing to security features like anti-money laundering and “know your customer,” which are unique to Paysafe and its core competencies.
Risks to an operator in online gambling are high, so an experienced provider is needed, the analyst explained. Currently, Paysafe provides digital merchant services for DraftKings, Caesars, and PointsBet Holdings.
Paysafe is set to report its fourth-quarter earnings on Feb. 10, according to FactSet. It reported sales of $354 million for the third quarter, below analysts’ forecasts of $370.6 million.
For the full year, the company has lowered its sales forecast to a range of $1.47 billion to $1.48 billion, from $1.53 billion to $1.55 billion.
Paysafe also announced plans to partner with the cryptocurrency exchage Binance on Wednesday. The move will allow Binance, the world’s largest crypto exchange by trading volume, to accept deposits from Europe.
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