Massachusetts has fined DraftKings Sportsbook for accepting credit card deposits.
The Massachusetts Gaming Commission released a noncompliance decision on Friday. Regulators said DraftKings took approximately $84,000 in credit card deposits.
“DraftKings’ failure to prohibit the use of credit card funds in Massachusetts wagers resulted in 1,160 impermissible wagers, funded by 242 credit card deposits, placed by 218 customers, with a total handle of $83,667.92,” according to the noncompliance agreement.
The misconduct occurred between 2023 and 2024.
In addition to the fine, DraftKings must:
- Provide proof that the $83,667.92 in credit card funds was returned to customers
- Develop a “corrective action plan” to ensure it doesn’t happen again
- Perform an independent internal audit to verify that no additional credit card funds were deposited or wagered
Chris Sieroty of GamblingCompliance first reported the fine.
Why Credit Card Deposits are Illegal
The MA Gaming Commission said accepting credit cards for sports betting is illegal under state law.
“It is important to note that the Massachusetts Legislature established the non-extension of credit as a fundamental tenet of the passage of the sports wagering law in the Commonwealth,” the regulator wrote.
Massachusetts is one of seven sports betting states to ban the use of credit cards to fund a sports gambling account.
Credit cards for sports betting could exacerbate gambling addiction. Gambling Harm has observed many bettors discussing the desperate use of bank chargebacks to get out of gambling debt.
A British study released in 2024 found that a ban on credit cards for gambling was most effective for people experiencing a “low level” of problem gambling. It didn’t change the behavior of people experiencing “moderate or high” levels of addiction.
Credit card-funded sports gambling could increase the risk of debt for some users. A 2024 study found that states with legal sports betting see:
- A 28% increase in bankruptcy filing likelihood due to online sports betting
- An 8% increase in the average amount of debt in collections per consumer due to betting
More than half of online sports bettors have reported chasing a bet, according to recent betting addiction statistics.
Read more: Illinois Becomes Seventh Betting State To Ban Credit Cards
DraftKings Prohibits Use of Credit Cards
Just weeks after the Massachusetts fine, DraftKings stopped accepting credit cards to fund sportsbook and online casino accounts.
The gambling site announced the policy in late August 2025.
The company framed the move as consumer protection, noting credit-card deposits can trigger cash-advance fees and high interest charges.
Gamblers can still use debit cards, bank transfers, and wallets like PayPal, Venmo, or Apple. DraftKings does not accept deposits from lenders like Affirm.
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