DraftKings is rolling out a new feature that will allow users in some states to use cryptocurrency converted to cash to fund online sports betting accounts.
At a Massachusetts Gaming Commission (MGC) meeting on Thursday, Chief of the Division of Sports Wagering Carrie Torrisi told commissioners that DraftKings will roll out the new deposit source in four states in the coming weeks. Chair Jordan Maynard named those states as Illinois, Kentucky, New Hampshire and Vermont.
Torrisi suggested that DraftKings’ home state of Massachusetts may have been part of the rollout had the MGC not changed its rules to ban crypto converted to cash as a permissible funding source for sports betting accounts effective Dec. 19 after a review and a staff recommendation. Similar to its credit card restriction, the Massachusetts ban also applies to crypto converted to cash and deposited into an account in other jurisdictions.
State regulatory stances differ on crypto use
While cryptocurrency is not widely used in licensed, state-regulated sports betting in the U.S., some states do allow it. Wyoming was an early adopter, having permitted crypto as a wagering funding method since 2021, while Colorado and Virginia’s gaming regulators began allowing cryptocurrency conversions for deposits in 2022.
SBC Americas reached out to DraftKings for comment but had not heard back at the time of writing. State gaming regulators in Kentucky, Vermont and New Hampshire did respond to inquiries.
“Kentucky’s sports wagering regulations directly contemplate the use of digital, crypto and virtual currencies,” Kentucky Horse Racing & Gaming Corporation Director of Sports Wagering Hannah Simms told SBC Americas. “Sports wagers may be made using forms of payment approved by Kentucky Horse Racing & Gaming including ‘cash equivalents converted to cash.’ The definition of ‘cash equivalent’ includes ‘digital, crypto and virtual currencies.’
“KHRG staff worked with DraftKings to evaluate their proposal. This included a full product walkthrough, review of any vendors involved and confirmation that the system underwent appropriate testing. Following that process, KHRG approved the method for use in Kentucky as it satisfies our regulatory requirements.”
The Vermont Department of Liquor and Lottery said it also defines crypto and virtual currencies as cash equivalents and authorizes their use for funding sports wagering accounts.
New Hampshire Lottery Director of Marketing Maura McCann noted that the regulator reviewed DraftKings’ plan to utilize a third‑party service to allow players to convert USD‑pegged stablecoins into cash before funds are deposited, and proposed internal controls as part of its review process. “At no point will DraftKings accept cryptocurrency or hold it in player wallets, keeping all activity compliant with New Hampshire state requirements for deposits,” said McCann.
In contrast, while Massachusetts regulators approved DraftKings’ request for a temporary waiver to implement the technology and test the feature, including a method of segregating crypto-sourced funds, commissioners previously voiced serious concerns at a December meeting.
“We believe, basically, crypto is not ready for primetime,” said Caitlin Monahan, director of the MGC’s Investigations and Enforcement Bureau (IEB). “We really don’t think at this moment in time, in this regulatory structure, it is a funding source that is ready to be incorporated and that we want to be encouraging.”
Monahan cited concerns over a comparative lack of regulations around the use of crypto, as well as fears over money-laundering potential. She did note that, as of that time, none of Massachusetts’ licensed online sportsbooks offered crypto converted to cash as a funding method. DraftKings Legal Director Pete Harrington stressed at the meeting that the operator was not considering directly accepting crypto, but was exploring converted crypto.
DraftKings, regulators ban credit cards
DraftKings is opening up crypto conversion space months after banning another scrutinized payment method, credit cards, for sports wagering deposits. Several states have banned or restricted credit card use for online sports betting, often citing concerns over problem gambling and financial harms. Those include Iowa, Massachusetts, New Hampshire, Rhode Island, Tennessee and Vermont, while the Virginia House of Delegates passed a bill this week.
In April 2025, the Illinois Gaming Board (IGB) approved a regulation to prohibit credit card funding for sports wagering. That new rule went into effect a few months later. Illinois is another of the four states in which DraftKings will soon roll out its crypto conversion feature.
IGB Director of Communications Beth Kaufman told SBC Americas that while Illinois sportsbooks may not directly accept cryptocurrency to fund sportsbook accounts, they can accept crypto that is converted to U.S. currency through money transmitters licensed by the Illinois Department of Professional Regulation.
