DraftKings Stops Credit Card Deposits

DraftKings has decided to pull the plug on credit card deposits across its sportsbook and online casino platforms in the United States. The change kicks in on August 25 and follows a regulatory setback in Massachusetts that cost the operator $450,000 in fines.

Good to Know

• The Massachusetts Gaming Commission fined DraftKings for letting players use credit cards in violation of state law.
• Customers will still have plenty of deposit options, including debit cards, PayPal, Venmo, and bank transfers.
• DraftKings returned more than $83,000 in user funds after self-reporting the violations.

The operator said the move is not only about compliance but also about helping customers avoid the high fees that usually come with credit card gambling transactions. A DraftKings spokesperson explained:

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

Massachusetts law clearly bans credit card use for betting, but DraftKings misinterpreted how far the rule applied. The operator believed it only restricted players depositing while inside state borders. Kevin Nelson, Senior Manager of Regulatory Operations at DraftKings, admitted:

“We misinterpreted the language of the law.”

Between 2023 and 2024, DraftKings mistakenly accepted over $83,000 from 218 users in credit card deposits. After flagging the issue, the Massachusetts Gaming Commission ordered the company to refund all affected players and prove compliance through a third-party audit.

Still Plenty of Deposit Options

While credit cards are going away, customers still have several ways to fund their accounts. Debit cards, ACH transfers, wire transfers, and digital wallets such as PayPal, Venmo, and Apple Pay remain available. DraftKings is promoting these alternatives as safer and more cost-effective for players.

For bettors, the decision may feel like an inconvenience at first, but in the bigger picture, it reflects a growing shift in the U.S. betting market. Regulators continue to push for stricter controls on how players deposit funds, and operators like DraftKings are adapting quickly to avoid compliance risks.

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