DraftKings Halts Credit Card Deposits Amid Regulatory Pressure
LISTEN TO THIS ARTICLE:Leading US gambling operator DraftKings has confirmed that it will stop accepting credit card deposits for online sports and casino gaming from August 25.
The decision comes after DraftKings was fined $450,000 by the Massachusetts Gaming Commission (MGC) for inadvertently allowing users to make credit card deposits and gamble in 2023 and 2024 despite a prohibition. The breaches happened on three separate occasions, totaling over $83,000 in accepted credit card deposits.
Although DraftKings self-reported the violations, it was not enough to avoid the penalty. The operator was also ordered to provide proof of returning the funds to all 218 users who made credit card deposits and conduct a third-party audit to verify compliance. At the time, Kevin Nelson, DraftKings' Senior Manager of Regulatory Operations, said the company misinterpreted the law, thinking it only applied to users physically in Massachusetts when making deposits.
DraftKings has made the strategic business decision to remove credit cards as a deposit option for sportsbook and casino in the United States.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.
Users still have multiple options to fund their DraftKings Sportsbook and casino accounts, including debit cards, ACH bank transfers, wire transfers, and payment services like PayPal, Venmo, and Apple Pay.
Credit Card Gambling Ban Trend
In addition to Massachusetts, several other states in the US have banned the use of credit cards for gambling, including Iowa, New Hampshire, Oregon, and Vermont. In April 2025, the Illinois Gaming Board also introduced regulations to ban credit card gambling. Beyond the US, jurisdictions like the UK, Brazil, Australia, and Sweden have similar bans in place.
Many states are against credit card gambling primarily due to concerns about problem gambling. It is believed that credit cards can enable compulsive gamblers to accumulate debt quickly and exacerbate addiction issues.
A study by the United Kingdom Gambling Commission in 2020 found that 22% of online gamblers using credit cards are classed as problem gamblers.
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