DraftKings Puts an End to Credit Card Deposits

US sports betting and gaming powerhouse DraftKings has informed its American customers that it will no longer accept payments with credit cards. The decision comes amid broader efforts to minimize gambling harm in the US and prevent harmed customers from overspending.

The Change Applies to DraftKings’ Sportsbook and Online Casino

The change was communicated to all of DraftKings’ customers. In its announcement, the company confirmed that it will be ending credit card deposits from Monday, August 25. The company pointed out that players’ credit card details will be automatically disabled from that date.

DraftKings clarified that this strategic business decision intends to help customers avoid cash advance fees and the higher interest rates associated with the usage of deposits via credit cards. The company explained:

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.

DraftKings statement

According to DraftKings, this change was voluntary and not required by regulators. Despite that, it will still reinforce the company’s compliance in states where credit card deposits for gambling are strictly prohibited.

It should be noted that the change will affect DraftKings’ sportsbook and online casino but not its daily fantasy sports products.  

The Change Will Align DraftKings with Broader Industry Shifts

While DraftKings named fees and customer convenience as the principal reasons for ending credit card deposits, the motion will also ensure that the operator remains compliant in states where gambling on credit is prohibited.

For context, DraftKings previously encountered trouble in Massachusetts after allowing several customers to fuel their accounts with credit cards. Because of these violations, the operator was slammed with a $450,000 fine.

The overall American gaming sector has largely begun a shift toward a future where players can no longer use their credit cards for gambling due to safer gambling concerns.