The times, they are a-changing.
This is not something new. This decision aligns them with other major gambling operators, such as Fanatics Betting & Gaming, Betr, and Sporttrade, which have already banned credit card funding for wagering accounts.
It also comes on the heels of another major announcement by DraftKings. Starting September 1, DraftKings will charge a 50-cent fee for every mobile and online bet placed in Illinois using its Sportsbook platform. This change follows a similar move by FanDuel.
It also comes on the heels of another major announcement by DraftKings. Starting September 1, DraftKings will charge a 50-cent fee for every mobile and online bet placed in Illinois using their Sportsbook platform. This change follows a similar move by FanDuel.
DraftKings CEO, Jason Robins, expressed his disappointment with Illinois policymakers for significantly raising the tax rate. He is worried that this could hurt the legal sports betting industry, while the illegal market continues to operate without paying taxes or providing any consumer protections.
What This Means for DraftKings Customers
DraftKings has informed its users that any saved credit card information will be disabled.
Moving forward, players will need to utilize alternative payment methods, including:
- Debit Cards
- ACH and wire transfers
- PayPal, Venmo
- Apple Pay
- Gift Cards
Bettors can also use cash at physical locations to fund their accounts.
DraftKings describes this step as a "strategic business decision" aimed at shielding customers from the high interest rates and cash advance fees usually associated with credit card deposits in gambling. Unlike regulatory demands, this decision was internally driven but coincides with growing scrutiny from regulators.
Why Are Credit Cards Being Banned?
DraftKings has decided to stop accepting credit cards for deposits in the U.S. due to worries about customer safety and more scrutiny from regulators. Recently, the company faced a significant fine in Massachusetts, where it is based.
The Massachusetts Gaming Commission fined DraftKings $450,000 for allowing credit card deposits, which goes against state laws. DraftKings reported this issue itself, noting that Massachusetts users had made over $83,000 in illegal deposits with credit cards, but the company didn't fix the problem for nearly a year.
As part of their agreement with the commission, DraftKings must refund the affected customers, improve its compliance efforts, and submit a plan outlining how they will correct these issues
Eliminating Credit Card Deposits is Not a New Trend
The trend to eliminate credit card deposits is not unique to DraftKings.
In fact, at least nine states in the U.S., including the majority in New England, already have regulations prohibiting the use of credit cards for legal sports betting accounts.
Some financial institutions, like Bank of America, also block these transactions to protect consumers. The industry is increasingly leaning toward this practice as part of responsible gambling efforts.
DraftKings Wants to Stay Competitive
By adopting this new policy, DraftKings joins its competitors in not allowing credit card deposits, but the change affects only their sportsbook and online casino platforms; their daily fantasy sports product remains unaffected.
This update aligns DraftKings with current industry compliance standards and strengthens its commitment to consumer protection in the competitive U.S. gambling market.
So, while this move might initially inconvenience some customers, it’s designed to foster safer and more responsible gambling in line with industry and regulatory expectations.
