DraftKings is no longer offering credit cards as a deposit method.
Key Takeaways
- The “strategic business decision” went into effect on Monday
- DraftKings cited customer depositing experiences as the reason for the change
- There are still multiple ways players can fund their DraftKings accounts
The online sportsbook and iGaming operator confirmed with Covers that the change is geared toward improving the customer’s experience. The restriction began on Monday.
“DraftKings has made the strategic business decision to remove credit cards as a deposit option for sportsbook and casino in the United States,” a DraftKings 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.”
DraftKings added that players can fund their accounts with debit cards, bank transfers (ACH), wire transfers, and financial platforms PayPal, Venmo, and Apple Pay, where permissible.
Running into issues
The Boston-based company’s decision to remove credit cards as a funding option comes a month after the Massachusetts Gaming Commission fined DraftKings $450,000 for accepting over 1,000 credit card transactions in a state that prohibits them.
More than $83,000 in illegal bets from 218 customers between February 2023 and February 2024 came from unlawful funding. DraftKings self-reported the violations and didn’t indicate that the Bay State fine was related to its nationwide credit card change.
However, this policy change will prevent DraftKings from encountering this issue again.
Potential shift
Fanatics Sportsbook and Sporttrade are two other operators who have banned credit card funding, and it could begin catching on more with regulators and sportsbooks.
DraftKings operates in 25 U.S. states. Seven of those prohibit credit card transactions: Iowa, Illinois, New Hampshire, Oregon, Massachusetts, Vermont, and Tennessee.
Illinois recently made the decision to stop offering that funding method, five years after launching wagering. Regulators have cited studies that say limiting credit card funding helps lower the risk of compulsive gaming for problem gamblers.
