From August 25, DraftKings Will No Longer Take Credits Cards

Right out of the blue, DraftKings notified its user base that it would no longer accept credit card deposits for either casino or sports wagering. The decision takes effect on August 25 and applies to all jurisdictions where DraftKings runs iGaming operations.

The stated reasons behind the axe are somewhat vague. In the short statement sent out to users, the company framed the decision as a positive step to help players avoid “cash advance fees and higher interest rates often associated with this payment method.” However, most experts agree that the decision is part of a broader industry trend that has taken a sharp turn against credit card gambling.

Why Now?

The timing of DraftKings’ credit card ban aligns conspicuously with the company’s dramatic fallout with the Massachusetts Gaming Commission, which fined the company $450,000 in late July. It transpired that the operator had accepted more than 1,160 credit card wagers despite a blanket ban on credit card gambling in the Bay State.

The investigation found that the wagers took place periodically over an 11-month period and amassed over $83,000, suggesting a methodical breach of the state terms. In DraftKings’ defence, the company self-reported these incidents, which, they claim, resulted from flawed software and staff miscommunication rather than any systematic intention.

It didn’t matter. The MGC found them guilty and levied the largest fine since sports betting was legalized in the state. To add insult to injury, DraftKings was also forced to refund 218 players, provide proof of the returns, and undergo a regulatory audit of its operations.

Industry Trends

The Bay State is not the only jurisdiction that frowns upon credit card wagering. States such as Tennessee, Iowa, New Hampshire, Oregon, Rhode Island, Vermont, and Illinois have laws or policies that ban credit-card deposits in either casino gaming or sports betting.

Illinois, for one, only recently proposed extending existing casino credit‑card bans to sports betting as part of broader regulatory reforms for responsible wagering. Vermont, as the newest sports betting market, banned credit card wagering right out of the gate. States like Pennsylvania are considering similar measures, but have failed to pass the ban bill in 2024.

Elsewhere in the world, the UK approved a credit card ban as early as 2020, while Australia joined the bandwagon last year. In the EU, casinos in Sweden could get on board, as well.

Wider Impact

DraftKings is hardly the first operator to distance itself from credit card deposits. Fanatics has recently stepped away from credit cards in New Jersey. At the same time, Betr, the micro‑betting platform offering standard pick ’em style DFS and sports betting, already bans credit‑card deposits across its entire offering.

However, it could have the most significant impact. Analysts suggest that DraftKings’ policy could become a blueprint for the industry. It may encourage competitors like FanDuel, BetMGM, and Caesars to adopt similar measures while offering regulators a demonstrated path toward enhancing consumer protection.

Future Implications of DraftKings Credit Card Ban

There’s little doubt that DraftKings’ decision sets an important precedent. The math is clear. For consumers, the ban will reduce the risk of accumulating high-interest debt through credit cards. Alternatives like ACH and digital wallets tether spending to actual accessible funds, and expectations are that players will transition to debit, ACH, or wallet-based funding without much of a loss.

For operators, it serves both self‑remediation and regulatory purposes. It helps them avoid hefty fines in the future – not unlike what Massachusetts slapped DraftKings with. On the regulatory front, with players like Massachusetts taking action and Illinois moving in the same direction, more states (like Pennsylvania) could formalise bans in the near future, which would make entertaining credit cards not only risky but also unprofitable.