DraftKings is moving away from credit card funding for its US online platforms, a decision that will take effect on 25 August.
DraftKings is set to phase out credit card funding for its US sportsbook and online casino platforms, with the change taking effect this coming Monday (25 August).
The Boston-based operator did not issue a formal press release, but communicated the update directly to its customers.
It confirmed via email to Next.io that players will no longer be able to make deposits using credit cards, a move it says is aimed at helping users avoid cash advance fees and the high interest charges commonly attached to gambling transactions.
According to the company, the decision has been taken to improve the overall user experience whilst also offering an additional layer of protection for its customer base.
The message sent to players included the following: “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.”
Any stored credit card details previously used for deposits will automatically be disabled later this month.
DraftKings emphasised that the change was not mandated by regulators but represented a proactive business decision.
However, the timing of the announcement follows recent scrutiny in Massachusetts.
In July, the Massachusetts Gaming Commission fined DraftKings $450,000 for allowing customers to fund accounts with credit cards during 2023 and 2024, despite the method being explicitly prohibited in the state.
A company spokesperson told Next.io that the nationwide policy update was independent of that penalty, though the overlap has incited questions about DraftKings’ underlying motivations.
More US states oppose credit card gambling
Several states already ban the use of credit cards for gambling.
Tennessee, which runs an online-only betting market, along with Iowa, New Hampshire, Oregon, Rhode Island, and Vermont, have long restricted the practice.
More recently, Illinois introduced its own prohibition on credit card deposits for sports wagering accounts in April. DraftKings had already adapted to comply with state-specific rules in these jurisdictions.
The decision highlights a wider shift in the US gambling sector, where regulators and operators are increasingly focused on consumer protection.
Industry analysts have suggested that removing credit card deposits may reduce the risk of indebtedness, particularly for players prone to high-risk spending.
The National Council of Legislators from Gaming States has voiced opposition to credit card gambling and last year drafted model legislation to outlaw the practice altogether.
However, some commentators argue that such restrictions may inconvenience recreational customers who prefer credit cards for rewards or record-keeping purposes.
By voluntarily withdrawing credit card funding nationwide, DraftKings may be seeking to pre-empt what could soon become a more widespread regulatory requirement.
Whilst debit cards, PayPal, and bank transfers remain available as alternatives, the move underscores the ongoing tension between commercial growth and commitments to responsible gambling.