Payment Giants Diverge on iGaming Merchant Underwriting in 2026

Stripe Implements Stricter Licensing Requirements

Stripe announced updated iGaming merchant eligibility criteria effective November 1, requiring operators to hold active, unrestricted gaming licenses in all primary jurisdictions where they accept player deposits. The policy specifically targets operators serving the U.S. market, requiring state-specific approval documentation from licensed operators in regulated states including New Jersey, Pennsylvania, Michigan, and Nevada.

Operators previously approved under Stripe's broader iGaming category face account review over the coming 90 days. Those unable to document jurisdiction-specific licensing within 60 days face account suspension or termination for non-compliance. Stripe stated the move reflects evolving regulatory expectations and reputational risk management.

The policy also introduces deposit velocity restrictions for newly onboarded iGaming merchants—capping transaction volumes at $100,000 per day for the first 30 days, scaling to full capacity only after compliance verification. Stripe's merchant services team cited chargebacks and fraud patterns specific to newly licensed operators as justification.

Checkout.com Expands Emerging-Market Eligibility

Checkout.com took the opposite strategic position, announcing expanded iGaming eligibility covering operators licensed in emerging markets including Colombia, Costa Rica, Curaçao, and the Philippines. The company states that while Stripe demands Western-market licensing, Checkout.com recognizes legitimate operators in jurisdictions with established regulatory frameworks, even if less restrictive than U.S. standards.

Checkout.com's updated guidelines require operators to demonstrate compliance with local gaming regulations and anti-money-laundering frameworks specific to their licensed jurisdiction. Operators need not maintain additional licenses in developed markets to qualify for Checkout.com merchant accounts, a significant operational advantage for operators focused on Latin America and Southeast Asia.

The processor also introduced tiered deposit limits based on operator license tier and compliance history—ranging from $50,000 daily for new merchants to unlimited transactions for operators with 12+ months of clean compliance records.

Operational Fragmentation and Merchant Strategy

Operators serving U.S. and European markets now require multi-processor strategies to manage divergent eligibility standards. Large operators maintain Stripe accounts for licensed U.S. operations while relying on Checkout.com, Worldline, or regional processors for emerging-market revenue. Smaller operators lack negotiating leverage and face integration friction managing multiple payment platforms.

Compliance teams report increased workload reconciling processor-specific documentation requirements. A single operator might need distinct licensing evidence packages for Stripe (U.S.-focused, strict) versus Checkout.com (emerging-market-friendly, localized). This creates redundant operational complexity and increases merchant services overhead by an estimated 15-20% for multi-market operators.

Worldline, Payoneer, and other secondary processors are fielding increased inquiry from operators seeking alternatives to Stripe's tightened stance, though many competitors lack Stripe's scale, merchant tools, or brand recognition.

What to Watch

Expect industry lobbying pushing back on Stripe's U.S. licensing requirement, particularly from operators licensed in multiple jurisdictions who view single-market restrictions as overreach. Checkout.com may leverage its emerging-market positioning to recruit Stripe-rejected merchants, improving market share in high-growth regions. Regulatory bodies including FinCEN and state gaming commissions will likely weigh in on payment processor licensing standards by Q1 2027, potentially standardizing eligibility criteria across the industry.