DraftKings will no longer accept credit cards for deposits on its sportsbook and online casino platforms across the U.S., effective August 25. The company says the move is designed to protect users from financial pitfalls like high-interest rates and cash advance fees, while promoting safer ways to fund accounts.
Customers will still be able to use debit cards, ACH and wire transfers, as well as platforms like PayPal, Venmo, and Apple Pay—provided those methods are supported in their state and linked to eligible accounts.
Compliance Misstep Triggers $450K Fine
The announcement comes shortly after DraftKings was fined $450,000 by the Massachusetts Gaming Commission. The penalty was issued after the company allowed 218 Massachusetts-based customers to deposit over $83,000 using credit cards between 2023 and 2024—a direct violation of state law.
DraftKings said it self-reported the incidents and took corrective action, including refunding all affected customers and undergoing a third-party audit to verify no further violations occurred. Kevin Nelson, the company’s Senior Manager of Regulatory Operations, attributed the error to a misunderstanding of the law, mistakenly believing the restriction applied only to users physically located in Massachusetts at the time of the transaction.
Massachusetts law bars the use of credit cards for all gambling activities, regardless of where the card is issued or where the customer is when placing a bet.
Trend Toward Safer Funding Options
While the change may inconvenience players accustomed to using credit cards, industry experts say it reflects a growing emphasis on responsible gambling and compliance across U.S. betting platforms.
DraftKings isn’t the first operator to cut ties with credit card deposits. Betr, a newer player in the sports betting space, already enforces a similar policy. Several states, including Iowa, New Hampshire, Oregon, Rhode Island, Vermont, and Tennessee, have also banned credit card funding for sports wagering. Illinois recently adopted the same restriction following a regulatory review of its five-year sports betting market.
Despite the policy shift, DraftKings remains focused on expansion. The company recently secured a direct license in Missouri alongside Circa Sports, signaling continued growth even as it tightens its approach to player protection.
Stored Credit Cards to Be Disabled
Players who previously used credit cards to fund their DraftKings accounts will see those cards removed as deposit options. The change applies to all customers nationwide, regardless of state laws.
While credit cards will be phased out, DraftKings emphasizes that players still have multiple deposit options at their disposal—ones the company believes offer a more secure and cost-effective experience.
