Why Payment Companies Consider Gaming Business as High Risk

Written by Alex Jones
2 mins, 33 secs Read
Updated On December 21, 2023

By 2023, the global gaming business is estimated to cross over $200 billion in market value. Ever since the pandemic lockdown due to COVID-19, interest in online gaming has surged, and the influx of new gamers has seen a significant rise in revenue turnout. This means that the gaming business market is booming and is expected to continue growing as more investors participate. 

Most online gaming businesses conduct multinational operations. If you establish one, you will have customers from all over the world; thus, you’ll handle various payments transacted in different currencies. To financial institutions, this may be an additional risk, and thus may be reluctant to provide services. Some contributing factors are currency variations in strength and stability, and some jurisdictions being more reputable than others. You will, thus, need to work with a provider specializing in high-risk companies if you are to extend your global market and establish a good rapport with your bank. 

The gaming industry’s biggest setback is providing a data security system that safeguards the customers’ personal information. With the rise in payment fraud, gaming customers have become reluctant to provide their account information when making purchases.

To woe the trust of the customers, online business companies need to establish secure payment processes that are trustworthy and reputable or partner up with a reliable gaming merchant account. This will certainly increase purchase traffic, as people will be more inclined to purchase a product if they are convinced their personal info is safe and secure. 

Why It is a High Risk

Merchant account service providers and banks consider the gaming business high risk. This is because these businesses present higher risks to their underwriters than other businesses. The gaming business is also high-risk because of high-volume turnover, varied global laws, potential chargebacks, and age restrictions. Here are more details on these risks.

Age Restrictions

Depending on the operational sites, a gaming business may face age restrictions where the user has to be at a specific age before they are allowed to use the service. This not only limits their market size but can also pose legal issues if it’s discovered minors are finding ways to access the platform.


High-volume chargebacks are a risk involved with the gaming business and can ruin a business’s reputation. Sometimes the players suffer huge losses, a risk naturally associated with online gaming, while at times, the chargebacks can be fraudulent or accidental. 

Players sometimes get confused and may think they didn’t authorize a specific payment and ask for a chargeback. In such events, frustrated customers will issue chargebacks, which the gaming company will have to pay if they lose the chargeback dispute. Since it is impossible to stop all chargebacks, a reliable payment processing service will help mitigate the chargeback amount effectively. 

High-Volume Turnover

Payment companies offering credit lines to gaming business partners consider the high-volume turnover a risk. This is because the business risks insolvency if its credibility is no longer satisfactory.


The exponential growth of the gaming business has come with benefits and drawbacks. Increased cybercriminal activities have been witnessed in a published gaming cybercrime report by ThreatMetrix, where it revealed that five percent of newly opened online gaming accounts are fraudulent. The commonest problem online operators face is account takeovers. A merchant account provider with fraud prevention systems that can do more than flag suspicious transactions will enhance your customers’ data protection and business security. 


The gaming industry is booming quickly, and this growth is not expected to hit a recess soon. The expansion of this global industry brings about various monetization opportunities and unique challenges. Therefore, if an investor or online casino owner wants to take advantage of this growth, they should invest in a good payment gateway. Although there are challenges and risks, many online payment gateway service providers still exist.

Author: Alex Jones