In what can only be described as a win for sports betting opponents who have decried the use of credit cards as a vehicle to fund sportsbook accounts, DraftKings has quietly removed the option for those who want to bet on credit.
Betting “On the Cuff” Denied
Last week, DraftKings, one of the leaders in the mobile sports betting industry, removed the option for funding accounts via credit card payment. Many anti-gambling advocates have been vocal about eliminating this method, citing that it can deepen people’s debt and worsen their financial status.
“DraftKings has made the strategic business decision to remove credit cards as a deposit option for sportsbook and casino in the United States,” a DraftKings spokesperson said. “The change is intended to help customers avoid cash advance fees and higher interest rates often associated with this payment method and otherwise improve the deposit experience.”
The Boston-based bookmaker did not allude to the potential for customers’ debt-related issues but rather focused on streamlining its financial platform and eliminating unnecessary interest charges associated with credit card usage. DraftKings did advise that funding sports betting accounts with debit cards, bank transfers (ACH), wire transfers, and financial platforms PayPal, Venmo, and Apple Pay will continue to be accepted.
Seven of the 25 states in which DraftKings operates, including Iowa, Illinois, New Hampshire, Oregon, Massachusetts, Vermont, and Tennessee, have outlawed the use of credit card funding for sportsbook accounts. The elimination of credit card funding is reported to reduce the risk of compulsive gambling issues.
The move could signal other sportsbooks to follow suit after DraftKings joined Betr and Fanatics in banning the funding practice. This would also assuage the sensibilities of legislators who have opposed sports gambling in the past, signaling that their views are being considered by major licensed online sportsbooks.
DraftKings Hit With Credit Card Fine
On July 25th, the Massachusetts Gaming Commission (MGC) slapped DraftKings with a $450,000 fine for accepting credit card-funded deposits totaling $83,000. The company self-reported the transgression to the MGC and refunded all of the money to those customers who were affected.
“Instead, DraftKings contends that its noncompliance was based on a fundamental misunderstanding of the prohibition at issue and did not constitute purposeful contravention of the law and regulations,” the commission wrote in its decision.
It was only seven months prior to that violation in July 2023 that DraftKings had self-reported credit card usage, but insisted the glitch was fixed through a software update.
However, in February 2024, the company discovered more breaches of the policy, which led to an MGC investigation and the subsequent fine being handed down in July 2025.
“DraftKings extends its sincere thanks to the Massachusetts Gaming Commission for granting us a permanent license to operate in the Commonwealth. Furthermore, we are dedicated to upholding the regulatory standards set by each state and jurisdiction in which we operate, and we value the productive and collaborative relationships we’ve built with regulators,” the DraftKings spokesperson said.
It is likely that these violations were also a contributing factor in the company’s ban on credit card-funded accounts.
