DraftKings to Prohibit Credit Card Account Funding

• DraftKings announced a nationwide prohibition on sports betting and iGaming account funding through credit cards
• The prohibition will begin on Monday, Aug. 25
• Ontario users can still use credit cards to fund accounts

DraftKings will no longer allow users to fund sports betting and iGaming accounts throughout the U.S. with the use of credit cards, a company spokesperson confirmed.

The sports betting operator communicated the new prohibition with customers on Thursday, Aug. 21. The credit card funding prohibition will go into place on Monday, Aug. 25.

A DraftKings spokesperson described the new prohibition as a “strategic business decision.”

Credit Card Prohibition Goes Into Effect Monday

An email to DraftKings customers informing them of the future credit card prohibition was sent yesterday.

Fanatics Betting and Gaming, Betr, and Sporttrade have also prohibited customers from funding sports betting and iGaming accounts in the country. At least nine states have their own prohibitions on users funding accounts or bets with credit cards.

Ontario users will still be allowed to fund accounts through credit cards, a DraftKings representative noted.

“DraftKings has made the strategic business decision to remove credit cards as a deposit option for sportsbook and casino in the United States. 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. Customers can still fund their DraftKings Sportsbook and casino accounts using debit cards, bank transfers (ACH), wire transfer, and payment platforms like PayPal, Venmo or Apple Pay (with an eligible payment method, such as a debit card), where permissible,” a DraftKings representative said.

The DraftKings representative said the majority of customers do not use credit cards to fund their accounts. A number of banks also prohibit their customers from using credit cards to fund sports betting or gaming accounts.

Business Decision, Not Reactionary

The same spokesperson said the policy change has nothing to do with any recently imposed state fines.

The Massachusetts Gaming Commission recently levied a $450,000 fine against DraftKings for improperly accepting 1,160 bets funded by credits cards from March 10, 2023, through Feb. 14, 2024 for a total handle of $83,667.92.

The Massachusetts Gaming Commission levied the fine on Friday, July 25. In addition to the monetary penalty, DraftKings will be required to refund $83,667.92 of the improperly accepted credit cards funds to 218 customers.

The fine is the largest the commission has levied upon a licensed online sports betting operator since launching sports betting in 2023.