Publication Date: August 22, 2025, 09:16h.
Updated on: August 22, 2025, 09:31h.
- DraftKings to eliminate credit card deposits
- This policy change comes after a $450K penalty
- Multiple states restrict credit card usage for online gambling deposits
DraftKings is set to prohibit its online sportsbook and iGaming users from depositing funds using credit cards, no matter the state regulations regarding credit for online gaming accounts.
On Thursday, DraftKings issued a notification to its online gaming users, indicating that credit card deposits will be banned starting next Monday, August 25. While some credit cards facilitate legal online sports gambling and iCasino transactions, they often incur significant fees and interest for cash advances.
“DraftKings has opted to eliminate credit cards as a deposit option for sportsbook and casino services across the United States. This decision aims to assist customers in avoiding cash advance fees and higher interest rates associated with this payment method, thus enhancing the overall deposit experience,” stated the DraftKings announcement.
Starting Monday, all stored credit card details for users will be disabled. For any future deposits, players must utilize alternatives such as debit cards, wire transfers, bank transfers (ACH), Apple Pay, PayPal, Venmo (with accepted payment methods), gift cards, or cash deposits at DraftKings retail locations.
DraftKings Penalty in Massachusetts
While online casinos operate legally in a mere seven states, online sports betting is monitored in 36 states and Washington, D.C. Historically, brick-and-mortar venues have functioned primarily on cash, but the rise of legal online gaming has introduced credit card options to the sector.
Numerous states permitting online sports betting, including significant markets like New York, New Jersey, Nevada, and Pennsylvania, allow credit card deposits, unlike Massachusetts, where DraftKings is headquartered.
Earlier this month, the Massachusetts Gaming Commission imposed a $450K fine on DraftKings for enabling some customers to use credit cards for deposits. The state regulator reported that at least 218 DraftKings Sportsbook accounts completed 242 credit card deposits totaling nearly $84K.
In addition to the $450K fine, DraftKings is required to refund $83,667.92 in credit deposits to the bettors involved.
Moreover, states like Connecticut, Illinois, Iowa, New Hampshire, Oregon, Rhode Island, Tennessee, and Vermont also restrict sportsbooks from accepting credit card deposits.
Understanding Cash Advances
Credit card companies classify gambling-related transactions as cash advances rather than standard purchases.
“When using your credit card line for cash access, lenders impose a cash advance fee. Since these cash advances come with additional fees and elevated interest rates, they become a costly way to obtain quick cash,” explains Jennifer Brozic of Experian.
As reported by Brozic, aside from a cash advance fee typically between 3% and 5%, these transactions do not have the same interest-free grace period as regular purchases. Consequently, interest begins to accumulate immediately.
For instance, if an individual takes a $1,000 cash advance from a credit card, they incur a $50 fee (5%). If repayment takes six months at an interest rate of 29.99%, the total interest would reach $93.73. This results in a total repayment of $1,143.72. For those already in debt, the interest can escalate significantly if repayment takes longer.