Dwolla

Dwolla is a United States payments company built on the ACH bank-transfer network. Historically it offered low-cost consumer transfers; it has since shifted toward business and API-based payments, so its use as a consumer betting-deposit method is limited today. Where referenced, it represents bank-account-funded transfers within the US.

Dwolla is a US-based payments company that once offered consumer accounts, but now sells bank-payment infrastructure to businesses rather than a consumer betting deposit method. 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.

But, betting using Dwolla isn’t the same as PayPal. The founders wanted to find a way to cut through all the red tape that seems to go with online gambling payment processing. Credit cards are expensive for businesses, ACH payments take forever, PayPal charges almost 3%, etc. So, the Dwolla people built their own network and offered low-cost transfers over the bank payment rails.

Dwolla and Online Gambling

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 belong in the online-gambling story is in the past: until 2018 its consumer Transfer product could fund accounts at licensed US betting sites, and that route closed when Dwolla discontinued Transfer. 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 and Legal US Betting

Dwolla's consumer Transfer product was discontinued in 2018, so it is no longer a deposit option at legal US betting sites.

How Betting With Dwolla Works

Dwolla no longer works like a betting e-wallet. Dwolla.com is now aimed at businesses that embed bank payments in their own products, not at individual players opening a wallet.

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.

Betting Using Dwolla: Overview

• Website: www.dwolla.com

• Currencies supported: US dollar

• Support countries: United States