Text size

Paysafe says it supports gaming brands in 18 states and Washington, D.C.

Shares of Paysafe were higher after the online payments company said it is expanding into New York’s regulated sports-betting market.

The stock (ticker: PSFE) was up by roughly 5.8% to $3.66 in premarket trading.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 and Caesars.

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 management 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.

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 forecast to $1.47 billion to $1.48 billion in sales, from $1.53 billion to $1.55 billion. 

Write to Karishma Vanjani at karishma.vanjani@dowjones.com

Read More