{"id":510251,"date":"2025-08-22T14:00:00","date_gmt":"2025-08-22T18:00:00","guid":{"rendered":"https:\/\/www.paymentsjournal.com\/?p=510251"},"modified":"2025-08-25T10:30:34","modified_gmt":"2025-08-25T14:30:34","slug":"why-draftkings-will-no-longer-take-credit-cards","status":"publish","type":"post","link":"https:\/\/www.paymentsjournal.com\/why-draftkings-will-no-longer-take-credit-cards\/","title":{"rendered":"Why DraftKings Will No Longer Take Credit Cards"},"content":{"rendered":"\n<p>DraftKings will no longer allow customers to use credit cards as a method of payment. The sports betting site cited this change as a way to protect its users, though it also brings significant benefits for the company.<\/p>\n\n\n\n<p>Customers can still fund their DraftKings accounts using debit cards, bank transfers, wire transfers, and payment platforms like PayPal, Venmo, or Apple Pay. Users who previously used credit cards to top up their accounts will have those cards disabled for funding by the end of the month.<\/p>\n\n\n\n<p>The company <a href=\"https:\/\/sbcamericas.com\/2025\/08\/21\/draftkings-to-ban-credit-card-deposits\/\" target=\"_blank\" rel=\"noreferrer noopener\">told SBC Americas<\/a> that the move is intended to prevent customers from incurring costly cash advance fees and high credit card interest. For gambling sites, these deposits are typically treated as cash advances rather than standard credit charges, since they are considered a way to access cash. As a result, these transactions incur higher consumer fees.<\/p>\n\n\n\n<p>\u201cWith several states already prohibiting use of credit cards as a funding mechanism, and the treatment of credit as a cash advance instead of a purchase, this move just puts DraftKings and their customers in a more secure spot,\u201d said <a href=\"https:\/\/javelinstrategy.com\/our-team\/jordan-hirschfield\" target=\"_blank\" rel=\"noreferrer noopener\">Jordan Hirschfield<\/a>, Director of Prepaid at Javelin Strategy &amp; Research.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-earlier-fines\">Earlier Fines<\/h2>\n\n\n\n<p>DraftKings has already come under fire in its home state of Massachusetts, where it is illegal for gamblers to fund their accounts via credit card. Last month, the Massachusetts Gaming Commission fined DraftKings $450,000 for accepting multiple credit card deposits from customers in 2023 and 2024. At least seven other states have banned the use of credit cards to fund gambling sites.<\/p>\n\n\n\n<p>DraftKings self-reported its violations on three separate occasions, acknowledging that it had accepted more than $83,000 in credit card funds. The company said it misunderstood the language of the law, believing it only applied to users making deposits while physically located in Massachusetts. The Massachusetts gaming regulator ordered DraftKings to return the funds to the 218 customers who improperly used credit cards for wagering.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-standardizing-deposits\">Standardizing Deposits<\/h2>\n\n\n\n<p>In addition to mitigating regulatory concerns, the move should also strengthen the security of DraftKings\u2019 deposits.<\/p>\n\n\n\n<p>\u201cThis move will standardize the deposits in DraftKings\u2019 stored-value accounts,\u201d said Hirschfield. \u201cDeposits will now be required to use cash equivalents to fund the value of their accounts, which reduces the risk for all parties involved. By removing credit, the remaining options also could present less cost to DraftKings, leading to increased options for player promotions and incentives to boost their stored value accounts.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DraftKings will no longer allow customers to use credit cards as a method of payment. The sports betting site cited this change as a way to protect its users, though it also brings significant benefits for the company. Customers can still fund their DraftKings accounts using debit cards, bank transfers, wire transfers, and payment platforms [&hellip;]<\/p>\n","protected":false},"author":8441,"featured_media":74796,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"0"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0"},"jnews_primary_category":{"id":"64830"},"jnews_social_meta":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[137,246],"tags":[1110,1247,11041,54326,54405],"class_list":["post-510251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysts-coverage","category-prepaid","tag-credit-card","tag-draftkings","tag-gambling","tag-massachusetts","tag-sports-betting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why DraftKings Will No Longer Take Credit Cards - PaymentsJournal<\/title>\n<meta name=\"description\" content=\"The gambling site DraftKings will no longer allow customers to use credit cards as a method of funding their accounts.\" \/>\n<meta name=\"robots\" content=\"index, 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