FanDuel Set to End Credit Card Funding on March 2

FanDuel is forging ahead with new player protection measures designed to safeguard consumers against harm by removing credit cards as a viable payment option.

The company is essentially catching up to competitor DraftKings, which already announced the end of credit cards for the purposes of gambling. FanDuel said that the decision comes after a process of carefully scrutinizing its payment options. 

FanDuel Readies to Discontinue Credit Card Payments 

“Over the last few months, FanDuel has been evaluating the payment methods that we offer to customers and decided to remove credit cards as an option for our Sportsbook, casino, and racing products in the United States. This change was made to improve the deposit experience for our customers,” the company said in a statement detailing its decision. 

While credit cards are a popular part of American culture, they also pose risks when paired with products such as gambling, where people could end up spending a lot more money and often money that they would use on essentials, such as paying bills or buying groceries.

Action has been two-fold. On the one hand, there has been proactivity from some operators, while on the other, some local jurisdictions in the United States have passed or encouraged similar measures, including Illinois.

Another problem with the use of credit cards has been the fees that apply to them, which, in some instances, could be as high as $10 to fund a $20 bet, for example. 

Credit cards have been attacked in multiple jurisdictions across the world, with the United Kingdom and Australia outright banning them, as have most other mature gambling markets.

In the meantime, there has been no federal-level action mandating that credit cards ought to be excluded from the overall gambling process, but operators have moved ahead with the measure anyway. 

Hidden Fees Must Go, as Bettors None the Wiser

Commenting on credit cards used for the purposes of sports betting, no other lawmaker has been more outspoken than Sen. Elizabeth Warren, who has urged colleagues to move sooner rather than later to come up with a framework that prohibits the practise of using credit cards for funding gambling accounts on a federal level.

She specifically spoke about the fees, which would vary – 3% to 5% – and impose “hidden” costs on gamblers, who could already be betting amounts that they may not be able to afford to lose. 
In December, New Zealand became the latest jurisdiction to outlaw credit cards for gambling.