Corona-virus Causing Issues with Sportsbook Payments
March 31, 2020
Many people are panicking during these uncertain times. They have a lot of nervous energy. For some, that means standing in a line, risking getting the corona-virus so that they can buy 36 rolls of toilet paper to add to their toilet paper hoard. Others are cashing out from their financial institutions.
This cashing out from investments caused stock prices to tumble and cryptocurrency values to drop. Thanks to recent efforts by the White House, the Congress and the Fed, these markets have rebounded a bit. When people were told that $2T was about to be pumped into the economy, they relaxed some.
But even with all that, certain people are still pulling money from anywhere they have it. For some of them this means sportsbook accounts. And they figure “Why not? No sports are being played anyway.” But this excessive cashout demand has put a log jam at many sportsbooks.
Not only is there a bit of a logjam, but companies are trying to slow the amount of cash that is leaving their possession. Last week we reported that The Bookmaker Group had instituted a cashout limit. That was for both total amount cashed out and also was limited to one cashout per week.
All of this comes as Bitcoin (the crytpocurrency most used for sportsbook transactions) fell by 40% in just a few weeks. So, now many sportsbooks that have taken that form of payment of the board entirely. It has been confirmed that BetPhoenix Group has done just that and have taken to sending checks and other forms of payments.
But, if you put yourself in their position, can you blame them? They are trying to keep a run on the bank all while staying afloat and available for the upcoming football season which is just four months away.
I can tell you that the sportsbooks on our top sportsbooks list are very solid financially. They have been in business a long time and have been profitable enough during that a period, so that a situation like this should not be a threat to their solvency. Time will tell of course but I can tell you that myself and everyone I know are just leaving their funds put. It will be business a usual for football season.
- Scott Morris – SBA
