DraftKings Sportsbook Adopts Crypto-to-Cash in Four States

DraftKings announced that players in four select states will soon be able to use cryptocurrencies to fuel their sports betting accounts. This represents a significant step for DraftKings and a major development for crypto enthusiasts.

DraftKings Adopts Crypto Deposit Option

The addition of crypto payment options to DraftKings’ platform was confirmed at the recent Massachusetts Gaming Commission (MGC) meeting. While Massachusetts, in particular, does not allow crypto deposits, DraftKings will launch such options in Illinois, Kentucky, New Hampshire, and Vermont. The announcement was also reaffirmed by regulators in Vermont and Kentucky.

As of the time of this writing, however, it is unclear what types of crypto DraftKings will work with. Experts predict Bitcoin and Ethereum to be on the table due to their popularity, although this has yet to be confirmed.

In any case, while this is good news for crypto fans, it also has a caveat – since any crypto gains are taxable income, users will have to pay tax on every favorable crypto-to-cash conversion.

Crypto-to-Cash Will Allow DraftKings Players to Make Crypto Deposits

It should be clarified that DraftKings will not allow players to wager directly with cryptocurrencies. Instead, the operator will implement crypto-to-cash solutions that allow depositing players to instantly convert their crypto into traditional currency. For context, Wyoming is the only state that currently accepts crypto bets, while other US jurisdictions have rejected such forms of wagering.

While not all states allow crypto-to-cash options either, operators in certain markets have allowed customers to purchase gift cards with crypto.

Massachusetts, meanwhile, was also preparing to trial crypto-to-cash solutions but eventually gave up on the idea. Representatives of the local regulatory body, the Massachusetts Gaming Commission, previously said that they don’t believe that crypto, as a whole, is ready for widespread implementation.

DraftKings Halted Credit Card Payments for Betting

A few months ago, DraftKings told its players that it would no longer accept sports betting payments with credit cards. The decision came amid broader efforts to minimize gambling harm in the US and prevent harmed customers from spending more than they can afford.

DraftKings, however, cited additional concerns as reasons for the decision, including the company’s desire to help its customers avoid cash advance fees and higher interest rates tied to credit card payments.