FanDuel has followed DraftKings by ending credit card deposits for US sports betting due to rising regulatory pressure. Massachusetts recently fined DraftKings $450,000 for accepting over $83,000 in prohibited credit card transactions. Bettors can still fund accounts through debit cards, bank transfers, and payment apps while the industry pivots away from high-cost credit options.
FanDuel is pulling the plug on credit card deposits for sports betting across the United States, marking the second major industry player to eliminate the payment method within a year. The decision mirrors a similar move by DraftKings last summer and signals a broader shift in how betting operators are approaching compliance risk. Credit card transactions have long carried higher costs for both bettors and platforms, with processing fees often reaching five percent or more and card issuers frequently classifying the transactions as cash advances. Those fees, which can hit $10 or a percentage of the deposit amount, have made credit cards an increasingly unattractive option in an industry already wrestling with thin margins.
State regulators are turning up the heat. A half dozen states including Massachusetts, Iowa, Tennessee, Rhode Island, Oregon, and Vermont currently prohibit credit card funding for online wagering, and enforcement actions are becoming both more frequent and more severe. The Massachusetts Gaming Commission delivered the clearest warning shot yet when it slapped DraftKings with a $450,000 fine last year.
Investigators found the company had processed more than $83,000 in impermissible credit card deposits across 2023 and 2024. While that penalty alone did not spark the current industry shift, it exposed a growing vulnerability for operators trying to maintain national platforms while navigating a patchwork of state-level payment restrictions. The compliance risk, once theoretical, now carries a real price tag.
What remains unchanged is the range of alternative funding methods still available to bettors. Both FanDuel and DraftKings continue to accept debit cards, bank transfers, and online payment applications provided those apps draw from eligible funding sources such as bank accounts or stored balances. The elimination of credit cards removes what had become a high-risk, high-cost option at the top of the market. For an industry under intensifying scrutiny from both regulators and consumer protection advocates, the message is unmistakable. Credit cards no longer belong on the betting app checkout screen.
