Several states moving to ban sports bettors from using credit cards as a deposit method at sportsbooks
It's becoming more and more rare for sportsbooks and states to allow credit cards as a sports betting deposit method
Sports bettors have long been able to use their credit cards in order to place bets and deposit funds into their accounts at online sportsbooks and sports betting apps, but many of those sportsbooks, as well as states across the country, are starting to ditch that type of deposit method.
Last week, the Ohio Casino Control Commission became one of the latest entities to push for banning credit cards as a sports betting deposit method, though bettors would still be able to use their debit cards.
Ohio isn't the only state looking at a credit card ban, as recent Colorado legislation aimed at protecting sports bettors includes language that would prevent bettors from being able to use credit cards at sportsbooks. Many states already have bans in place on credit cards as a deposit method and it wouldn't be too much of a surprise if other states – in addition to Ohio and Colorado – started to follow suit. New York, Maryland and New Jersey have also considered legislation to ban credit cards for online gambling.
It's not just the states that have been banning or looking at banning credit cards for bettors, as most of the top sportsbooks like DraftKings and FanDuel stopped allowing credit cards over the last year, and Fanatics Sportsbook never allowed credit cards to begin with. It is worth noting that credit card withdrawals have not been allowed at U.S. sportsbooks, and these recent changes are centered around not allowing credit cards as a deposit method.
So why the change? Gambling addiction and responsible gaming habits are constantly being discussed and by banning credit cards as a way to deposit funds, bettors would only be allowed to wager with funds they actually have as opposed to a line of credit. Additionally, sportsbooks have had regulatory issues when it comes to credit cards in the past, and not allowing credit cards can avoid potential legal headaches. We saw this recently as DraftKings was fined $450,000 in Massachusetts last year as the sportsbook was found to have taken more than 1,000 credit card-backed wagers between February 2023 and February 2024 despite this violating state rules and laws.
