DraftKings will no longer take credit card deposits as of August 25

Beginning August 25, DraftKings will phase out credit card deposits for players at its sportsbook and casino in the United States. Following regulatory fines, the action attempts to improve security, shield consumers from excessive fees, and adhere to changing state gambling regulations.

DraftKings is changing its payment processing guidelines significantly.

On Thursday, the massive Boston-based sports betting and daily fantasy company revealed its intention to stop taking credit card contributions for its sportsbook and casino businesses in the United States.

In an effort to assist consumers in “avoiding cash advance fees and higher interest rates” related to credit card funding, DraftKings will stop accepting credit cards as a form of payment on August 25. According to DraftKings, the modification will enhance consumers’ usage experiences while adding an extra degree of security.

Later this month, customers who have previously funded their DraftKings accounts with credit cards will no longer be able to utilize their stored credit cards to pay their accounts with the operator.

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A DraftKings representative informed SBC Americas that the company has made the strategic business choice to stop accepting credit cards as a form of deposit for its US sportsbook and casino. “Debit cards, bank transfers (ACH), wire transfers, and payment platforms like PayPal, Venmo, or Apple Pay (with an eligible payment method, like a debit card), where permitted, are still ways that customers can fund their DraftKings Sportsbook and casino accounts.”

Betr, a media and sports betting company, also prohibits credit cards, in addition to DraftKings.

DraftKings is fined heavily for credit card infractions.

In an effort to assist its consumers, DraftKings is doing away with credit card deposits; however, this decision coincides with a recent regulatory fine for permitting credit card deposits in states where the payment method is illegal. DraftKings was fined $450,000 by the Massachusetts Gaming Commission last month for many consumer credit card transactions made in 2023 and 2024.

Credit card funding for gambling of any kind is prohibited by the current Massachusetts gaming law. If the user is attempting to wager from within Massachusetts, the legislation also prohibits credit card deposits made in states where credit cards are accepted.

On three different times, DraftKings self-reported its infractions, attributing them to an internal misunderstanding. Over $83,000 in credit card funds have been accepted, according to the operator. Additionally, DraftKings was ordered by the Massachusetts gambling authority to reimburse the 218 consumers who had fraudulently used their credit cards to place bets.

In order to verify that no further credit card deposits were made on Massachusetts accounts, DraftKings also had to perform a third-party audit and produce documentation of the refunds.

The audit covered DraftKings’ whole Massachusetts presence, beginning in 2023.

State regulations governing credit card payments for sports wagering

In Tennessee, an online-only market that likewise forbids credit card funding for sports betting, DraftKings has effectively blocked credit card deposits despite the breach.

Laws prohibiting credit card deposits are also in place in Iowa, New Hampshire, Oregon, Rhode Island, and Vermont. Credit card funding of gaming accounts for online sports betting is prohibited in Illinois, according to a policy approved by the state’s gaming authority.

Prior to its fifth year as a regulated online sports betting market, the Illinois Gaming Board (IGB) reviewed its wagering processes and implemented the new rule.

Additionally, the IGB prohibits using credit cards to pay for bets at casinos and video games.

Courtesy: https://sportshandle.com/, https://www.cbssports.com/, https://www.bettingnews.com/, https://www.covers.com