PXP FINANCIAL


The right payment partner is key to navigating the US gaming market


Up until the last couple of years, the only way to gamble legally in the US was in person. Now, and in response to an increased demand for online entertainment services, a number of states have started to change their legislation. These changes in regulation have allowed more states to create a safe framework for both gaming operators and players, opening a world of opportunity. But with that comes fresh challenges. Kamran Hedjri, CEO of PXP Financial, explains how the US regulatory landscape has changed, and how digital currencies will impact its evolution in the coming years.


I 6 JUNE 2022 GIO


n the US, constitutional laws allow states to create, implement and enforce their own individual regulations. For a country the size of the United States of America this makes sense – the wide-ranging demographics, population and social standards across the states certainly warrants unique laws. But for payment providers operating in the country this presents something of a compliance headache, particularly when it comes to gaming.


CHALLENGES OF THE US REGULATORY LANDSCAPE


As each state has its own individual regulations to follow, both merchants and PSPs must take a


different approach to compliance depending on the state. They need to know that, for example, New Jersey only allows withdrawals from closed- loop cards, while in Michigan prepaid cards are not accepted at all, so there is a limitation on which cards can be used. At the extreme end of the regulatory scale, in Tennessee casino gambling is not legal in any form. To add to the complexity, when entering into new states new licenses are required for both merchants and payment processors, but there is no universal price for these licenses. From the high costs of getting licensed to the time it takes to understand a new market, it can feel like entering a new market is not worthwhile.


Harry Collins/Adobe Stock


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