DraftKings to Stop Accepting Credit Cards for U.S. Sportsbook and Casino Deposits
DraftKings is implementing a significant policy change, announcing it will no longer accept credit card deposits for its U.S. sportsbook and online casino platforms. The new rule, which the company frames as a voluntary move to promote safer gambling and improve the customer experience, took effect on Monday, August 25.
A “Strategic Business Decision”
In a statement, DraftKings described the move as a “strategic business decision” designed to benefit its customers. The company explained that the change is intended to help players avoid the cash advance fees and high interest rates that are often associated with using credit cards for gaming deposits.
“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,” the company stated.
The new policy will apply exclusively to DraftKings’ real-money gaming products. The company confirmed that its daily fantasy sports (DFS) offerings will not be affected and will continue to accept credit card payments.
A Proactive Move in a Shifting Landscape
While DraftKings emphasized the voluntary nature of the decision, it comes amid a clear regulatory shift across the United States. A growing number of states are moving to restrict or ban the use of credit cards for online gambling.
States including Tennessee, Iowa, and Massachusetts already have laws in place that prohibit credit card deposits for sports betting. In fact, the decision follows a recent $450,000 fine levied against DraftKings in Massachusetts. The penalty was for a compliance issue where the company inadvertently allowed customers to fund their accounts with credit cards, a violation of state law. DraftKings self-reported the issue to regulators.
By implementing a nationwide ban on its own, DraftKings may be preemptively aligning its policies with the direction of future regulation, potentially mitigating compliance risks and positioning itself as a leader in responsible gaming practices.
Alternative Payment Options Remain
DraftKings customers will still have a wide range of deposit methods available to them. The company will continue to accept:
- Debit cards
- ACH bank transfers
- PayPal
- Venmo
- Apple Pay
- Gift cards
- Cash at physical retail locations
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