Using a credit card for sports betting is a particularly risky financial move.
Credit-card-funded sports betting can turn gambling losses into debt.
The Consumer Financial Protection Bureau found that sportsbook credit card transactions are often cash advances. These involve fees, immediate interest charges, and potentially lower credit scores.
Recognizing the worsening problem of gambling in the U.S., some states, regulators, banks, and even sportsbooks are backing away from credit card deposits for sports betting.
As of May 2026, 10 states that permit online sports betting do not allow users to fund their accounts with credit cards. It’s a small win for consumers of online gambling products.
Can You Use A Credit Card For Sports Betting?
It depends on the sportsbook and the state. The legal answer is changing.
As of 2026, 39 states regulate sports betting and set the rules for credit card use. Many originally allowed cards to boost state-sponsored online betting. This came at the expense of consumer protection.
Now, 10 prohibit this funding method.
States Prohibiting Credit Cards for Online Betting
- Illinois
- Iowa
- Oregon
- Tennessee
- Vermont
- Virginia
- Rhode Island
- Maine
- Massachusetts
- New Hampshire
How NY Addresses Credit Cards for Sports Betting
New York has not banned credit card deposits for sports betting outright. Instead, state rules allow credit-card deposits only up to $2,500 per year in any single mobile sports-wagering account.
That makes New York more restrictive than states that freely allow credit cards, but less protective than states that prohibit credit-card funding altogether.
In 2025, New York considered legislation to ban credit card use.
Connecticut’s Policy on Credit Cards for Betting
Connecticut-licensed operators do not accept credit cards, but the state does not prohibit them from doing so.
Legislation to do so passed the Connecticut House in 2025, but the proposal fell short in the Senate.
2026 Policy Efforts Against Credit Cards
Alongside advertising and direct marketing, the credit-card issue has become one of the clearest consumer-protection fights in the U.S. online gambling market.
At least three states made progress in 2026.
In April, Maine Gov. Janet Mills signed LD 2080. The law prohibits licensed gambling operators and suppliers from accepting credit cards to fund accounts.
In Virginia, lawmakers enacted HB 515 in 2026. The bill blocks the Virginia Lottery from approving credit cards as a funding method for sports betting.
Ohio could be next. The Ohio Casino Control Commission has proposed changing its sports-gaming account rule to remove credit cards as a funding option.
Federally, the proposed SAFE Bet Act would establish a nationwide regulatory structure that bans using credit cards for sports gambling.
Sportsbooks Are Also Dropping Credit Cards
Major U.S. sportsbooks have started moving away from credit cards as a direct funding method. However, credit cards could still be used to buy gift cards or fund e-wallets such as Paypal.
DraftKings stopped accepting credit card deposits for its U.S. sportsbook and casino in August 2025. Customers could still use other permitted payment methods.
FanDuel also stopped accepting credit card deposits in March 2026.
BetMGM also moved away from credit cards in 2026.
These companies are not prioritizing consumer protection. Dropping credit cards now may be a business decision.
Why Sportsbooks Are Ditching Credit Cards
In years past, the betting industry opposed restrictions on credit cards for sports betting.
According to a report from Campaign for Accountability, the betting industry stifled proposed credit card bans in Maryland, Pennsylvania, and New Jersey.
However, now the industry has soured on credit cards. Banning credit cards helps protects them from fraud-related attempts. Discontinuing credit cards can also mitigate against chargeback attempts.
Consumers quickly feel the financial impact of credit card-funded deposits, including fees and interest, which can lead to negative platform experiences.
The online gambling industry wants you to be a long-term user. Allowing you to use a credit card may lower your lifetime value to the company. FanDuel recently reported users losing too much too fast for its liking.
Some sportsbooks see a business case for ending credit card deposits.
A 2024 paper from the industry-aligned National Council of Legislators from Gaming States (NCLGS) suggested that credit cards be banned for online casino gambling.
Massachusetts Shows Enforcement
Another reason some sportsbooks are prohibiting credit card use in the U.S. is the difficulty of complying with a patchwork of state laws and rules.
Massachusetts has one of the clearest examples of an operator violating state rules.
In 2025, the Massachusetts Gaming Commission fined DraftKings $450,000 after the company allowed customers to deposit and use credit-card funds for wagers in Massachusetts.
The regulator said the violations involved 1,160 impermissible wagers, 242 credit-card deposits, 218 customers, and $83,667.92 in handle.
That case is also important because it shows that states must require audits, refunds, corrective-action plans, and real operator penalties for allowing credit card use.
Why Debt Makes Betting More Risky
While the legal and regulatory landscape is changing, many consumers will still be able to find betting sites that accept credit cards. These include offshore, unregulated gambling platforms.
Consequently, it’s critical to know the risks.
Credit cards are financially unwise for gambling. Sportsbooks allow fast deposits and quick bets. When these deposits rely on credit cards, losses become new debt instantly.
Chasing losses means gambling to recoup losses. It’s a clear sign of potential problem gambling.
A credit card can make covering losses easier because the user does not need to have cash on hand. The sportsbook gets funded immediately. The financial consequences arrive later.
Gambling Cash-Advance Fees
Many users do not realize that a gambling deposit may not be treated like a normal credit-card purchase.
The CFPB found that most sportsbook credit card deposits are cash advances, with higher fees, higher interest rates, and no billing grace period.
The CFPB also found that disclosures from sportsbooks and card companies were often unclear, so users were surprised by fees.
That matters because gambling losses can be costly. Surprise credit-card fees make the financial impact hit harder.
Credit-Card Betting Is Part of a Bigger Problem
The financial risks of online sports betting go beyond credit cards.
A 2026 New York Fed analysis found that legalized mobile sports betting increased online sportsbook deposits and was associated with rising credit delinquencies.
The authors found that overall credit delinquency rose by about 0.3 percentage points after legalization, even though only a small share of the population newly took up sports betting.
That finding undercuts the industry’s claim that gambling harm is limited to a tiny group of outliers. The data increasingly shows that online sports betting can damage household financial stability at scale.
Should You Bet With a Credit Card?
No. Do not use a credit card to gamble.
Even if legal, using a credit card for sports betting is a poor financial choice.
A debit card is generally safer than a credit card. That said, online gambling can cause harm if it drains funds needed for bills and living expenses.
The real issue isn’t the payment method. Online gambling platforms are designed to keep users using a product that depends on excessive user losses.
What To Do If You Already Use One For Gambling
If you used a credit card to fund a sportsbook or online casino account, check your statement carefully.
Look for:
- Cash-advance fees
- Higher interest charges
- Charges routed through payment apps
- Any gambling transaction you do not recognize
Ask your card company if gambling transactions count as cash advances. To help quit gambling, consider removing saved cards, self-excluding, and seeking support services.
FAQ: Credit Cards And Sports Betting
Can you use a credit card for sports betting?
In some states, yes. But a growing number of states ban credit card deposits for sports betting, and major operators such as DraftKings and FanDuel have stopped accepting credit cards nationwide.
Which states ban credit cards for sports betting?
States with bans or enacted restrictions include Iowa, Massachusetts, New Hampshire, Oregon, Rhode Island, Tennessee, Vermont, Illinois, Maine, and Virginia. Ohio has proposed a rule that would remove credit cards as a funding option, but has not finalized it yet.
Why are credit cards bad for sports betting?
Credit cards can create debt. They may also trigger cash-advance fees and immediate interest charges, making a losing bet even more expensive.
Do sportsbooks treat credit-card deposits as cash advances?
Often, yes. The CFPB found that issuers allowing sportsbook transactions largely treat them as cash advances.
Did DraftKings and FanDuel ban credit cards?
Yes. DraftKings stopped accepting credit-card deposits in August 2025. FanDuel stopped accepting credit card deposits on March 2, 2026.
Are debit cards safe for sports betting?
Debit cards are less risky than credit cards because they do not create credit-card debt. But debit-card betting can still cause financial harm if a person loses money.