DraftKings to eliminate credit card deposits across US sportsbook and casino platforms

DraftKings will discontinue credit card deposits for its US sportsbook and online casino operations starting August 25.

The operator confirmed the change this week, saying customers will need to use alternatives such as debit cards, bank transfers (ACH), wire transfers, or payment platforms like PayPal, Venmo, and Apple Pay with eligible methods.

“DraftKings has made the strategic business decision to remove credit cards as a deposit option for sportsbook and casino in the United States,” a company spokesperson said. “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.”

Any credit cards previously stored on customer accounts will be disabled for funding after the new rules take effect.

DraftKings fined in Massachusetts

The decision follows a recent $450,000 penalty from the Massachusetts Gaming Commission (MGC). The fine stemmed from incidents in 2023 and 2024 in which 218 users made deposits totaling more than $83,000 with credit cards, a method prohibited under state law.

DraftKings self-reported the violations on three occasions, citing an internal miscommunication and misinterpretation of the statute. Kevin Nelson, the operator’s senior manager of regulatory operations, said DraftKings believed the law applied only to deposits made by players physically located in Massachusetts, not to credit card transactions initiated in states where the method is allowed.

As part of the settlement, DraftKings was required to return the funds to affected customers and provide proof of repayment. The MGC also required the operator to undergo a third-party audit of its Massachusetts operations, which began in 2023, to verify that no additional deposits were accepted by credit card.

State-by-state rules

Massachusetts is one of several US jurisdictions that prohibit funding sports betting accounts with credit cards. Other states with restrictions include Iowa, New Hampshire, Oregon, Rhode Island, and Vermont. In Tennessee, an online-only market, DraftKings also bars credit card deposits in compliance with state rules.

Illinois adopted a similar measure when the Illinois Gaming Board reviewed its practices at the five-year mark of regulated online wagering. The IGB’s policy bans credit cards for both sports betting and casino gaming accounts.

The change aligns DraftKings with other operators that do not allow credit card deposits. Sports media and betting company Betr also prohibits the method across its operations.

While credit cards are still permitted for gaming deposits in some jurisdictions, several states have cited concerns over consumer protection and debt management in their decision to restrict the practice.