DraftKings to Stop Accepting Credit Cards on August 25

DraftKings will no longer accept credit cards for sportsbook or online casino deposits, effective August 25. The company says the decision is intended to help customers avoid cash-advance fees and high-interest charges.

DraftKings has not released an official statement, but notified customers directly. One user on Reddit shared the content of the message:

“We’re reaching out to let you know that, effective August 25th, DraftKings will no longer accept credit cards in the United States as a payment method for Sportsbook or Casino. 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. As a result, any stored credit cards will no longer be available for sportsbook or casino deposits after August 25th.”

While credit cards will no longer be available, DraftKings will continue to offer several other deposit methods (varies by state):

• Debit cards
• Bank transfers (ACH)
• Wire transfer
• PayPal
• Venmo
• Apple Pay
• Gift cards
• Cash at a partner casino cage or retail stores

Fine in Massachusetts Preceded Change

DraftKings’ move to prohibit credit cards comes a few weeks after the Massachusetts Gaming Commission (MGC) fined it $450,000. The fine, which is the largest ever imposed by MGC in the state, resulted from DraftKings accepting credit card deposits, which are prohibited in Massachusetts.

After an investigation, the regulator discovered 1,160 unauthorized wagers. Over 200 customers placed wagers through 242 deposits, totaling more than $83,000 in handle.

The violations occurred over a one-year period, between 2023 and 2024, shortly after Massachusetts launched its regulated sports betting market.

DraftKings discovered and self-reported some of the violations, initially attributing the issues to software problems. However, the commission concluded that the recurring failures and internal miscommunications resulted in serious compliance failures.

Credit Card Bans Expanding

Massachusetts is only one of several states that prohibit the use of credit cards for deposits at sportsbooks. The others include Iowa, New Hampshire, Oregon, Rhode Island, Tennessee, and Vermont. Illinois recently joined the list, approving a ban earlier this year.

Other jurisdictions are weighing similar steps. In Pennsylvania, state Sen. Wayne D Fontana introduced a bill in April 2024, but it failed to gain traction and died in committee.

Prohibiting credit cards at online gambling platforms is not only a US policy. The UK implemented the rules in 2020, while Australia implemented them in 2024. Several European countries are also exploring this option, with Sweden recently taking a step closer to implementing a credit card ban.