DraftKings Sportsbook Announces Ban on Credit Card Deposits

The effort to slow the growth of problem gambling scored an unexpected victory over the weekend.

DraftKings Sportsbook has announced it will be banning credit card deposits, starting today. The sports betting giant is the first to eliminate the controversial deposit option, which has been linked to the growth in problem gambling. The ban will also apply to the DraftKings Casino.

The decision to ban credit cards was made to help better protect customers, according to the Massachusetts-based Sportsbook. They cited high interest rates and cash advance fees, which were leading to bettors needing to spend more money than those using other deposit methods.

While the decision has been largely cheered by responsible gaming groups, problem gambling may not have been the driving reason. DraftKings was recently hit with fines in Massachusetts for accepting credit card deposits, despite it being banned by the Massachusetts Gaming Commission. After paying out fines and bumping heads with its home state, the industry leader may have decided that banning credit cards was easier than risking future violations.

The question now is how DraftKings’ customers will respond to the change. The sportsbook is risking losing credit card customers to other rivals, including FanDuel. The country’s top two sportsbooks own over 80% of the US market share, but time will tell if the ban changes that.

Credit Cards Viewed as Dangerous Deposit Option

Higher costs aren’t the only reason responsible gaming advocates have opposed credit card deposits. 

Many US consumers are willing to overspend using a credit card, including when betting on sports. This can lead to bettors being stunned by high bills, which will only grow larger if they are unable to pay them off quickly. These can lead to life-altering debts, ruining lives in the process.

Credit cards can also make it easier for those struggling with gambling addiction to hide their problem. That can lead them to isolate themselves further, making it less likely they will reach out to problem gaming resources.