Users of the two biggest online gambling operators in the U.S. will no longer be able to fund their betting activity with a credit card.
After DraftKings stopped accepting credit cards as a deposit method anywhere in the country last year, FanDuel is making the same change.
“Over the last few months, FanDuel has been evaluating the payment methods that we offer to customers and made the decision to remove credit cards as an option for our sportsbook, casino and racing product in the United States,” a FanDuel spokesperson told SBC Americas.
The spokesperson did not confirm a timeline for the phase-out, but messages to customers suggested it will take effect on March 2. Like DraftKings’ own change last year, the FanDuel ban does not impact its operations in Canada.
FanDuel follows in DraftKings’ footsteps
Last August, DraftKings announced it would no longer allow customers in the U.S. to deposit funds via credit card on its sportsbook and casino platform.
At the time, the company said that it made the change to help customers “avoid cash advance fees and higher interest rates” associated with using credit cards for gambling, as well as to add an extra layer of consumer protection.
DraftKings also noted that the prohibition extended to not only direct credit card deposits but also the use of credit cards through payment platforms like PayPal, Venmo or Apple Pay. Those tools can still be used with eligible payment methods such as a debit card.
FanDuel’s rival made that change less than a month after it was fined $450,000 by the Massachusetts Gaming Commission for accepting more than $83,000 in credit card deposits in 2023 and 2024. Massachusetts is one of the numerous states that do not allow their licensed online gaming operators to accept credit cards.
Other states also reconsider credit card usage
As well as Massachusetts, the likes of Iowa, New Hampshire, Oregon, Rhode Island, Tennessee and Vermont have all banned credit card deposits for sports betting. The Illinois Gaming Board (IGB) also adopted a regulatory policy to prohibit them last year. FanDuel already prohibited credit cards in several states but has now extended that change to every state in which it offers sports betting, casino and racing activity.
Meanwhile, other states are mulling over whether to end the use of credit cards for gambling.
Two weeks ago, the Virginia House of Delegates overwhelmingly voted to pass a bill that would ban them for online sports betting, approving the idea by a vote of 94-3. The bill’s sponsor called his proposal “a straightforward consumer protection” measure.
“Allowing gambling with credit cards encourages people to wager with money they do not actually have,” Del. Marty Martinez told the Virginia House. “Research and regulatory experience consistently show that access to credit amplifies gambling behavior and it is strongly associated with higher losses and reduced self-control.”
New York and Maine also each have their own bills in play this year to ban credit cards for online sports betting.
