Sports betting operator DraftKings is set to launch a crypto-to-cash deposit feature for accounts in four U.S. states as it tries to keep up with evolving financial technology, according to MEXC.
Key Takeaways
- DraftKings has been given approval for crypto-to-cash deposits.
- The feature will launch in four states.
- Massachusetts remains excluded due to the ban on crypto conversion.
The company confirmed users will be able to fund their accounts with digital assets converted into cash in Illinois, Kentucky, New Hampshire, and Vermont in the coming weeks. The new feature was discussed at a recent Massachusetts Gaming Commission (MGC) meeting, where regulators confirmed DraftKings had obtained approval.
Massachusetts, where DraftKings is headquartered, will not be included in the rollout. A rule change dated Dec. 19, 2025, bans crypto converted to cash as a permissible funding source for sports betting customers, mirroring the state’s ban on credit card betting.
The chief of the sports wagering division at the MGC, Carrie Torrisi, said Massachusetts would likely have been part of the rollout if not for the rule change.
Officials previously raised concerns about digital assets, including Investigations and Enforcement Bureau director Caitlin Monahan, who said crypto is “not ready for prime time.”
Other states have taken a more permissive view. Hannah Simms, director of sports wagering at the Kentucky Horse Racing and Gaming Corporation, said the state’s regulations allow cash equivalents, including digital currencies, to be converted to cash. She added regulators worked closely with DraftKings to evaluate the proposal before approving it.
The rollout follows a broader trend of tightening restrictions on financing of sports betting accounts. States including Iowa, New Hampshire, Rhode Island, Vermont, Tennessee, and Illinois have banned credit cards for wagering deposits, citing concerns about debt and gambling harm.
Enjoying Covers content? Add us as a preferred source on your Google account
Analysts assess DraftKings’ prediction markets push
The payment expansion comes as DraftKings faces scrutiny over its new prediction markets platform. In December, the company rolled out DraftKings Predictions in 38 states, operating under the oversight of the Commodity Futures Trading Commission.
In response, analysts at investment bank Truist Securities described the launch as strategically significant but legally unsettled. The move expands DraftKings’ reach into states where sports betting is not legal, but ongoing court cases between states and operators have created a complicated regulatory environment, with a U.S. Supreme Court review viewed as plausible.
Analysts also say DraftKings is not putting its core state gaming licenses at undue risk, and they expect others to follow. Fanatics has already launched a similar product, and Flutter Entertainment, the parent of FanDuel, is expected to follow.
DraftKings has now reduced its projections for 2026 and 2027 by 22% and 18% respectively, reflecting assumptions made around prediction markets costs, betting hold, and paid media partnerships.
