Payment preferences and related sports betting behavior: A secondary analysis of player data from an online sports gambling operator

Abstract

This study investigated the relationship between payment methods and sports betting behavior using transactional data from a European online sports gambling operator. Analyzing account data from newly registered players (N = 72,494) in Germany, Spain, Great Britain, and France, this research employed fixed-effects regression to assess intra-individual differences in gambling behavior as a function of the most recent deposit type used by a given player. Within individuals, voucher deposits (B = −2.12, p < 0.001) and eWallet deposits (B = −1.65, p = 0.001) were associated with lower daily stakes relative to bank transfers; credit and debit cards showed no significant differences. A second model examined the time from deposit to the next withdrawal attempt and provided evidence consistent with the hypothesized role of transaction friction. Relative to bank transfers, eWallet deposits were associated with a higher withdrawal hazard (HR = 1.18, p = 0.001), voucher deposits were associated with a lower hazard (HR = 0.55, p < 0.001), and credit and debit cards showed no significant differences. Exploratory analysis revealed significant heterogeneity in player behaviors and payment choices, and the influence of specific payment methods appeared to vary across player segments. Notably, 88.9% of deposits in the outlier-excluded analytic sample were not followed by a withdrawal under the model’s event-classification rule, although successful withdrawals equaled 51.1% of deposited value. Moreover, 26.5% of withdrawal requests, representing 48.3% of requested withdrawal value, were subsequently reversed. These patterns highlight the importance of distinguishing withdrawal-event frequency from withdrawal value and completed withdrawals.