DraftKings will ban the use of credit cards for sportsbook and online casino deposits in the United States beginning August 25, 2025. The Boston-based operator announced the decision on Thursday, saying the change is designed to protect customers from “cash advance fees and higher interest rates” tied to credit card funding.
The move comes just weeks after the Massachusetts Gaming Commission fined DraftKings $450,000 for allowing customers to deposit with credit cards in the state, where such transactions are prohibited by law.
Why DraftKings Is Banning Credit Cards
A DraftKings spokesperson told SBC Americas that the company has made a “strategic business decision” to eliminate credit card funding. Customers will instead have access to alternative payment methods such as debit cards, ACH transfers, wire transfers, PayPal, Venmo, and Apple Pay, where permitted.
DraftKings framed the ban as a user experience upgrade, but the timing highlights regulatory scrutiny. Massachusetts law prohibits all gambling-related credit card deposits, even if the card was issued in a state where they are permitted.
DraftKings self-reported violations three times in 2023 and 2024, acknowledging that more than $83,000 in credit card deposits were accepted. The operator refunded 218 customers and was required to conduct a third-party audit of all Massachusetts operations dating back to its 2023 launch.
Industry Context: A Growing Shift Away From Credit
DraftKings is not the first operator to remove credit cards from its payment ecosystem. Betr, the microbetting-focused sportsbook, already bans credit card deposits. The policy reflects increasing pressure on sportsbooks to demonstrate responsible gambling safeguards, as credit cards carry greater risk of debt accumulation compared to debit or bank-linked payments.
Industry analysts note that DraftKings’ nationwide ban could prompt competitors such as FanDuel, BetMGM, and Caesars to evaluate similar changes. Regulators may also look to DraftKings’ move as a benchmark for responsible payments in sports betting. While some customers may view the ban as restrictive, industry observers argue it could reduce impulsive betting tied to borrowed funds and lower the risk of problem gambling behavior.
Bottom Line
DraftKings’ nationwide ban on credit card deposits marks a major shift in U.S. sports betting payment options. Framed as a consumer protection measure but prompted by regulatory scrutiny, the move signals where the industry may be headed. As of August 25, bettors must switch to debit cards, digital wallets, or bank transfers—a transition that could reshape both player habits and sportsbook compliance strategies.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: https://sportshandle.com/draftkings-to-ban-credit-card-deposits/