Summary
- DraftKings has taken a bold step by swiftly halting all gambling with credit cards.
- This measure encompasses both credit card deposits made directly and those processed through third-party payment platforms using credit cards.
- In Massachusetts, DraftKings faced a regulatory challenge after not fully adhering to the ban on credit card usage.
DraftKings is taking a bold step forward. Starting today, August 25, the renowned sports betting and gaming company will no longer accept deposits and bets funded by credit cards. Announced last Thursday, this decision underscores DraftKings' strong dedication to minimizing gambling-related harm.
Credit cards are out as a funding method in DraftKings – and more
When people are allowed to gamble using credit, they often spend more, which can lead to trouble with regulators. This was evident in July when DraftKings faced a $450,000 fine in Massachusetts for letting sports bettors use credit cards. To clear up any misunderstandings, DraftKings has now instituted a nationwide ban on using such payment methods. Although this isn't a universal rule across the United States, a number of jurisdictions have already banned credit cards for gambling, drawing successfully from international best practices. DraftKings's mistake in Massachusetts serves as a strong reminder for companies to steer clear of these errors. Other companies, like Fanatics Betting & Gaming and Jake Paul-supported Betr, have also chosen to block credit card payments. This new rule extends to any funds coming from an alternative payment source that's tied to a credit card. So if someone tries to fill an e-wallet with a credit card and then deposit into DraftKings, it simply won’t work. While there isn't a national ban on credit card gambling in the U.S., other countries have enforced such rules. Australia, the United Kingdom, and parts of Europe have already embraced these restrictions.
