DraftKings has announced it will remove credit cards as a payment option for its sportsbook and online casino customers across the United States, with the policy taking effect on August 25. The Boston-based operator said the change is intended to enhance the customer experience and protect players from financial risks often tied to credit card deposits, such as high-interest rates and cash advance fees.

Compliance Issues and Recent Fine

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

As reported by SBC Americas, the policy shift comes shortly after DraftKings faced a $450,000 penalty from the Massachusetts Gaming Commission (MGC). Regulators determined that between 2023 and 2024, the company accepted over $83,000 in deposits from 218 Massachusetts-based players using credit cards, a practice prohibited by state law.

According to the MGC, DraftKings self-reported the violations on three separate occasions and took immediate steps to correct the issue. The operator refunded all affected customers and submitted proof of the returns, while also undergoing a third-party audit to verify that no other credit card transactions occurred.

Kevin Nelson, Senior Manager of Regulatory Operations for DraftKings, acknowledged the compliance failure, explaining, “We misinterpreted the language of the law,” believing the restriction applied only to customers physically located in Massachusetts at the time of the deposit.

Massachusetts law strictly prohibits credit card funding for all types of gambling, including online sports betting, even if the credit card is issued in another state.

Shift Toward Safer Payment Options

Although credit cards will no longer be accepted, DraftKings emphasized that players will still have access to multiple funding methods. Debit cards, ACH and wire transfers, and digital wallets such as PayPal, Venmo, and Apple Pay will remain available for deposits. These alternatives are being promoted as more secure and cost-effective for users.

Industry analysts suggest that the change, while initially inconvenient for some players, aligns with broader trends in the U.S. betting industry. Operators are increasingly focused on responsible gambling initiatives and regulatory compliance, ensuring customers have safer ways to fund their accounts.

The operator is not alone in its approach. Betr, another U.S.-based sports betting platform, has already banned credit card funding. Several states—including Iowa, New Hampshire, Oregon, Rhode Island, Vermont, and Tennessee—also prohibit credit card deposits for sports wagering. In Illinois, the state’s gaming board recently adopted a similar rule as part of a review of its five-year sports betting market.

For DraftKings, the elimination of credit card deposits represents both a regulatory adjustment and a strategic step to reduce financial risks for its players. The company continues to expand its operations nationwide, recently securing a direct sports betting license in Missouri alongside Circa Sports.

While the upcoming change may prompt some customers to adjust their payment preferences, industry experts believe it will have minimal impact on overall engagement due to the availability of alternative methods. The move also reflects an industry-wide shift toward reinforcing responsible gaming and improving consumer protections.