Dwolla is a very cool, very new US-based company that is taking payment processing in a new direction. From the customer’s point of view, Dwolla is a direct competitor to PayPal. It allows you to send money to your friends, receive money and purchase goods online. In some places, it is even used to pay for things in the real world.
But, Dwolla isn’t the same as PayPal on the inside. The founders wanted to find a way to cut through all the red tape that seems to go with payment processing these days. Credit cards are expensive for businesses, ACH payments take forever, PayPal charges almost 3%, etc. So, the Dwolla people built their own network from the ground up and are now able to process payments faster than anyone else at a fraction of the cost.
This is good for you, the customer, because it means you can deposit anywhere for free, send money to anyone for free and only pay $0.25 when you receive payouts. That officially makes Dwolla the cheapest gambling payment method of them all.
So what does any of this have to do with online gambling? Well, not a whole lot yet. Because Dwolla is based out of the United Sates, it is under strict orders not to do business with unlicensed gambling sites. You can thank the Unlawful Internet Gambling Enforcement Act of 2006 (the UIGEA) for that.
Where Dwolla does work with online gambling is at licensed betting sites right here in the United States. Surprisingly, the UIGEA exempted online horse racing, greyhound betting and fantasy sports betting from the law. On top of that, several states have started issuing licenses to local poker sites and internet casinos.
Dwolla Betting Sites
Dwolla is only accepted at US-legal and licensed betting websites. This is still a young company but it’s growing quickly and is now accepted at the following sites:
- DraftKings.com (fantasy sports betting)
- OffTrackBetting.com (horse and greyhound racing)
- DraftTeam.com (fantasy sports betting)
- HorsePlayersBet.com (horse racing)
How Dwolla Works
Dwolla works like most other e-wallets in its basic function. You visit Dwolla.com, sign up for an account and link that account to your bank. From there, you can send money directly from your bank account to someone else’s via Dwolla. This works for personal payments, business transactions, deposits to betting sites and withdrawals from betting sites.
You can send money to people via their Dwolla account ID, e-mail address, phone number or even Twitter Handle. It also has plans to integrate itself into Facebook, LinkedIn and other social networks. The best part of all is the pricing scheme.
It’s free to send money and it costs just $0.25 to receive money. If you receive $10 or less, the transaction is free for both parties. Dwolla manages to survive because it doesn’t use the traditional payment processing channels that credit cards, PayPal and paper checks use. They have built relationships with banks and have a new way to process financial transactions quickly and easily.
Anyways, once you have an account with Dwolla, you can use it to deposit at any US-legal gambling site that accepts it as a payment method. Just choose Dwolla as your payment method and then you’ll be sent to the Dwolla website to confirm the transaction. Play for as long as you want and then withdraw the money back to Dwolla. From there, you can cash it out to your bank account.
- Website: www.dwolla.com
- Currencies supported: US dollar
- Support countries: United States
- Minimum deposit: No minimum
- Maximum deposit: $5,000 per transaction but you can apply for higher limits
- Maximum withdrawal: same as above
- Daily, weekly or monthly limits: Unlimited
- Customer support email: Web form