DraftKings is no longer accepting credit card deposits on its sportsbook and online casino platforms across the United States. The new policy went into effect August 25. The company announced that customers will instead need to fund their accounts using alternatives such as debit cards, bank transfers, wire transfers, or digital payment options including PayPal, Venmo, and Apple Pay, where available. Any credit cards previously stored in user accounts will automatically be disabled.
According to DraftKings, the move is designed to improve the customer experience and eliminate issues tied to credit card use, such as cash advance fees and high interest charges. The operator characterized the change as a business decision that better aligns with both consumer protection concerns and regulatory expectations.
The announcement comes in the wake of a fine issued earlier this year by the Massachusetts Gaming Commission. Regulators found that DraftKings had accepted more than $83,000 in credit card deposits from 218 customers despite the state’s explicit prohibition of such transactions. The company self-reported the incidents, refunded the customers involved, and commissioned an independent audit of its operations. As a result, DraftKings was ordered to pay $450,000 in penalties.
Massachusetts is one of several states that ban credit card funding for gambling. Other jurisdictions with restrictions include Iowa, New Hampshire, Oregon, Rhode Island, Vermont, Tennessee, and Illinois. These rules reflect growing concern among regulators about problem gambling and the risks of players accumulating debt through credit-based betting.
DraftKings now joins operators like Betr, Fanatics, and Sporttrade, which have already prohibited the use of credit cards for deposits. The shift highlights an industry-wide trend toward reducing reliance on credit, signaling a broader focus on responsible gaming and financial safeguards for players.
Starting August 25, DraftKings customers nationwide will need to adjust to the new policy and rely on alternative methods for account funding. The company’s decision underscores both regulatory pressures and a changing approach in the online gaming sector, as operators attempt to balance customer convenience with financial responsibility.
