DraftKings Sportsbook got the early edge in the mobile sports betting market in New Jersey.
Launched within the first week of August, the NJ sports betting app reigned as the lone online operator in the Garden State for the better part of a month. Yet as competitors joined the fold, it became apparent that DraftKings Sportsbook was missing a key piece.
That changed over the weekend, as DraftKings Sportsbook added PayPal as an accepted deposit option for New Jersey bettors.
Catching up with the NJ sports betting crowd
Breaking the news in an email to users Sunday, the longest-running NJ wagering app made it known that PayPal would be integrated as a deposit option.
For several weeks last month, the mobile operation enjoyed a monopoly in the Garden State market, allowing it to not concern itself with payment varieties. From the onset, DraftKings Sportsbook accepted Visa, MasterCard, and online bank transfer.
Yet in recent weeks, the mobile competition ramped up. With 888 Sport soft-launching its product Monday, the online crowd has grown to seven. And the majority of them offered what DraftKings did not: PayPal.
Not including DraftKings Sportsbook, four of the six mobile operations accepted PayPal. That number now stands at five:
William Hill and playMGM still do not accept PayPal.
Importance of PayPal for sportsbook apps
A report from Eilers & Krejcik Gaming indicates the significance of accepting non-credit card payment options in New Jersey. By volume, credit cards account for just 20 percent of mobile payments at NJ online gambling sites.
The remaining 80 percent were alternative electronic options.
Part of that discrepancy concerns credit card decline rates, which, as noted by Legal Sports Report, stood at more than 75 percent when the NJ online casino industry launched in 2013. That rate has dipped but still stands at around 50 percent.
Even some major banks have disallowed online casino- and poker-related transactions, including Bank of America, Capital One, and Wells Fargo.
Enter an alternative payment option, particularly PayPal, which helps users avoid such issues with credit cards.
A big step for DraftKings Sportsbook
Certainly becoming the first non-Nevada product to go mobile was a boon for DraftKings Sportsbook. The playing field leveled, however, as more competitors entered the market.
By adding an alternate payment option such as PayPal, which the company did for daily fantasy sports, DraftKings Sportsbook took a step forward in re-establishing itself as the go-to product in New Jersey.
The first month of NJ sports betting revenue is expected to be released this week. Certainly, DraftKings should lead the pack after the first month, especially with a several-weeks head start.
It recently accepted its one-millionth bet, too.
That was fast! Congratulations, NJ. Your 1,000,000th bet has officially been placed. A simple $3 Run Line wager from Butler, NJ turned into $10,000 in FREE bets. Join us on the ride to the next million. pic.twitter.com/maLYPoxp0a
— DraftKings Sportsbook (@DKSportsbook) September 8, 2018
The addition of PayPal could lead to even better results.