A group of Illinois Democrat lawmakers wants to outlaw credit cards for gambling altogether, as the Illinois Gaming Board’s (IGB) own regulatory ban on their use for online sports betting nears enactment.
Rep. Curtis Tarver and Rep. Marti Deuter filed House Bill 4149 that would amend both the Illinois Lottery Law and the Illinois Gambling Act to stipulate that “a person shall not use a credit card to participate in a gambling game.”
In particular, the measure would make it illegal to sell lottery tickets via credit card and would prohibit casino ATMs from allowing a person to withdraw money via a cash advance on a credit card. The Illinois Lottery presently allows both retailers and the lottery’s website to take sales via credit, while ATMs at casinos allow cash advances.
“Accessing gambling funds through credit creates an unnecessary layer of risk,” said Deuter. “This proposal is about responsibility and transparency.”
The bill has been referred to the House Rules Committee.
IGB’s own ban now approved and in effect
While the bill’s specific examples refer to in-person casino gambling and lottery play, its broad “gambling game” language ostensibly could apply to all forms of physical and digital gambling including online sports betting.
Illinois currently does not ban credit card usage in gambling through state law, but the IGB announced in late April a new rule that would ban them for online sports betting, citing responsible gambling concerns. The IGB already prohibits the use of credit cards to fund casino and video gaming wagers.
“We determined that prohibiting the use of credit cards to fund sports wagering accounts is a justified and impactful advancement in Illinois sports wagering,” said IGB Administrator Marcus Fruchter at the time. “There is a growing body of recent research showing that restrictions on credit usage to fund wagering accounts encourages responsible gambling and mitigates the harms of compulsive gambling.”
An IGB spokesperson confirmed to SBC Americas on Thursday that the General Assembly’s Joint Committee on Administrative Rules approved the regulator’s credit card ban at a meeting on Oct. 16.
“The Secretary of State will publish the rule in the Illinois Register on Nov. 7, and the rule is now effective,” said the IGB on Oct. 30. “The IGB advised sports wagering licensees that it expects them to be in full compliance with the credit card prohibition by Nov. 10.”
The IGB offered no comment on HB 4149.
Other states made moves
Other U.S. gaming markets including Iowa, Massachusetts and Tennessee already ban credit cards. Some other states have floated the idea in their respective legislatures.
Meanwhile, in a notable move in August, DraftKings voluntarily stopped accepting credit card payments nationwide, citing financial risk and consumer protection concerns.
At the end of 2024, the National Council of Legislators from Gaming States (NCLGS) recommended in its draft model legislation for online gambling that no states should allow credit card deposits or withdrawals.
