Americans lost roughly $27 billion in 2025 to state-regulated online sports betting and online casino platforms. Much of that money was deposited into online betting accounts almost instantly, but payouts (withdrawals) often take much longer, potentially hurting consumers financially.

“I had plenty of negative experiences with withdrawing from the casino/sportsbook, but not a single issue ever with depositing,” Rob Minnick, host of the “One Day at a Time” recovery podcast, told GamblingHarm.org.

More than a quarter (27%) of Americans have an online sports betting account, according to a recent poll, and problematic play appears to be on the rise. One factor could be the withdrawal process.

Payouts from betting apps can take hours or days, depending on the operator, payment method, day of the week, holidays, and internal checks. Withdrawals can be canceled or reversed before the money reaches a bank account.

This article explains why online sportsbook and casino withdrawal times, along with potentially predatory direct marketing, are a consumer protection issue.

Payout vs. Withdrawal in Gambling

Let’s quickly review some terms related to the online gambling consumer experience.

A “payout” is sometimes used interchangeably with “withdrawal.” The term payout can refer simply to the money won from a successful wager. Here, it typically means the money is still on the platform.

However, some consumers use “payout” to refer to the process by which funds from their betting account are successfully withdrawn or deposited into their bank account, card, or digital wallet.

Another term consumers sometimes use in this context is a gambling “cashout.” A cashout, or “cashing out,” is sometimes a more informal way of saying a withdrawal.

Some sportsbooks offer cash-out features for early wager settlement. Critics argue these usually favor the sportsbook, especially for parlays.

What Happens When You Try to Withdraw?

While waiting to take money off an online sportsbook or casino, consumers may receive direct marketing via email, text, or push notifications offering “bonuses” or “free bets.”

These tactics during withdrawal processing may lower success rates. One study found that only 4% of online bettors withdrew more money than they lost over a 5-year period.

In response, in 2026, Connecticut was among several states considering improvements to the payout process for consumers.

“The process to deposit is very quick, and typically the withdrawal process is the exact opposite,” said Paul Tarbox, Director of Public Policy for the Connecticut Council on Problem Gambling. “Consumers are typically incentivized to keep the funds inside the platform. That brings more opportunities for gambling-related harm.”

Lived Experience With Betting Withdrawal Reversals

One person who experienced the harm associated with industry withdrawal practices is Minnick, the podcast host and addiction expert. Minnick is in recovery from problem gambling.

“There would be delays on the withdrawals, giving me more time to find bets that would tempt me to leave the money in,” Minnick said. “Every withdrawal that wasn’t instant had a cancel option. The only conceivable purpose is to get money back on a wager as quickly as possible.”

Minnick noted that operators promote big user wins, but the public doesn’t know the actual payout.

“It’s in the best interest of gambling companies to make it unappealing to take money off the platform because the longer you play, the more you’ll lose,” he said. “Yet they seem to market themselves as a way to win big and enjoy the money. The dissonance is obvious and intentional.”

Studies On Betting Payout Harm

Research suggests that withdrawal reversals may increase harm and undermine “responsible gambling,” a controversial industry framework.

In 2021, the U.K. Gambling Commission introduced a ban on reverse withdrawals for online gambling. The regulator said that “evidence shows that reverse withdrawal functions present a risk to players because of the temptation to continue gambling.”

Motivating the move was a 2016 study of bwin.com player data that found reversed withdrawals were associated with future self-exclusion.

Later, a 2024 review of behavioral-tracking research found that reversed withdrawals may indicate loss chasing or difficulty quitting after winning.

Other researchers have described slow withdrawals and easy withdrawal reversals as online gambling “sludge” — friction that makes a beneficial action harder while deposits remain nearly frictionless.

Payment Processing Costs

For the industry, payment processing is a major cost. Instant withdrawals would benefit consumers and potentially make the product safer, but it would come at the expense of operators.

DraftKings, for example, doesn’t disclose total payment-processing spend, but it said that in 2025 its payment-processing fees increased by $65.4 million year over year. That was only the increase, not the total amount paid.

The online betting industry may pay well over $1 billion a year in the U.S. to move gamblers’ money in and out of betting accounts. The exact figure is hidden in financial reports inside broader cost-of-revenue categories.

“From my conversation with the industry, the hesitation around frictionless withdrawals is related to fees,” said Jonathan Cohen of the American Institute for Boys and Men. “They get hit with a payment processor fee on each withdrawal. If someone is moving money in and, more importantly, out a lot, it could cost the sportsbook serious cash.”

Cohen believes the industry has a real business issue here, but reformers and regulators should still look at frictionless withdrawal “as a tool in the toolbox” to mitigate population-level gambling harm.

In 2025, states collected $3.7 billion in sports betting taxes. Consumer-friendly withdrawals could eat into that windfall, as faster payouts could reduce operator revenue and, by extension, state tax revenue. High-profile industry critics, such as Warren Buffett, argue that states shouldn’t sponsor sectors like online sports betting.

Violations of Sportsbook Withdrawal Time Rules

Some states are taking notice. Michigan is one that has more clearly defined rules on how long it can take to receive an online betting payout.

In 2025, Michigan fined DraftKings for failing to process a user withdrawal request of nearly $20,000 and not giving a reason for doing so. The delay in this case lasted several months.

In an annual report, the state said it sent 66 warning letters to operators for various issues, with failing to process withdrawal requests within 10 business days as among the most common violations.

Typically, consumers must file a complaint for a state to investigate this issue.

Offshore vs. Regulated Gambling

In jurisdictions that regulate online gambling, industry proponents say it protects consumers from illegal platforms that may not honor their withdrawal requests. That can be a real risk with offshore gambling platforms.

But if regulated operators can delay withdrawals, market to users during pending payouts, or make withdrawals easy to reverse, the regulated market falls short on basic consumer protection.

“One of the assumed benefits of legalization was that when it came time for sportsbooks to pay up, customers wouldn’t have to worry about getting their money,” said Danny Funt, author of Everybody Loses, a 2026 book on the industry.

“Sportsbooks can be evasive about why they’re delaying a payout and when a customer might expect to get their money,” he continued. “I’ve heard from people at problem-gambling helplines that they end up fielding calls from exasperated customers who are looking for anything they can do to collect their winnings.”

People who are vulnerable to problems may experience financial harm from these practices. Secondhand harm can be immense, with one gambling problem affecting five others, on average.

NJ Shows What Betting Payout Rules Can Do

New Jersey regulators have also flagged the withdrawal issue as a major concern.

In 2021, the New Jersey Division of Gaming Enforcement issued a letter warning the industry about player payout requests. New Jersey didn’t issue fines or name any operator.

The DGE said that New Jersey rules “prohibit the practice of soliciting or incentivizing withdrawal requests to be rescinded or canceled by the patron.”

Nonetheless, a withdrawal can be reversed if the patron initiates it or fails to provide the information needed to process it.

In 2026, New Jersey’s S3461 proposed more guardrails by barring a patron from canceling a withdrawal request during a three-day period after the request and before the funds are disbursed. The bill would also prohibit solicitations asking patrons to rescind pending withdrawals.

Connecticut Considered Withdrawal Protections

In 2026, Connecticut’s HB 5229 initially included withdrawal consumer protections, but lawmakers later removed them before passage.

Tarbox, the CT Council on Problem Gambling director of public policy, said these protections could take years to cross the finish line in Hartford.

An earlier draft of HB 5229 would have made it illegal for an online sportsbook or casino to cancel or modify a pending withdrawal after a customer requested it.

There were exceptions, such as banking errors, fraud prevention, anti-money laundering compliance, duplicate withdrawal requests, or technical malfunctions.

HB 5229’s initial version would also have required operators to disclose certain information to customers during a pending withdrawal, including the expected processing timeframe.

The original proposal would have restricted direct advertising to customers with a pending withdrawal, covering channels such as email, phone, text, mail, and social media.

How States Could Regulate Sportsbook Withdrawal Times

A growing number of strategies could be used to help consumers, including:

• Require clear withdrawal timelines before the bettor requests a payout.
• Limit withdrawal times to a single day.
• Ban sportsbook incentives to cancel or reverse withdrawals.
• Prohibit targeted promotions while a withdrawal is pending.
• Require operators to process withdrawals as quickly as deposits, absent real fraud risks.
• Treat repeated withdrawal reversals as a problem gambling risk signal.
• Require operators to explain delays in plain language.

What to Do When Your Betting Payout Is Delayed

• Consider support resources if experiencing urges to cancel a pending withdrawal.
• Take screenshots of the withdrawal request and timestamps.
• Save all chat or email support messages.
• Check whether identity verification is complete.
• Ask for the specific reason for the delay.
• File a complaint with your state regulator.
• Consider self-exclusion or blocking software for urges to reverse a withdrawal.

Sportsbook Withdrawal Times FAQ

How Long Do Online Sportsbook Payouts Take?

In the U.S., payout times vary by operator and method, but they are usually far longer than deposit times.

DraftKings, a leading online sportsbook and casino, says on its website that debit card withdrawals can take up to 24 hours, PayPal and Venmo up to 2 days, online banking up to 2 business days, and checks can take up to 14 business days, depending on the amount.

FanDuel says on its website that debit card, PayPal, and Venmo withdrawals can be processed within 24 hours, while online banking withdrawals can take up to 5 business days, depending on the bank.

BetMGM notes that withdrawals include an internal review period of up to three to five days before payment processing.

Why do online sportsbook withdrawals take so long?

Online sportsbook withdrawals can take longer for several reasons. These include payment-method processing times, bank delays, weekends and holidays, identity checks, fraud reviews, and internal operator review periods.

Are sportsbook deposits faster than withdrawals?

Usually, yes. Deposits are typically designed to be fast because they allow immediate betting. Withdrawals can take longer because they often require operator review and payment-provider processing.

Can a sportsbook stop me from withdrawing my money?

A sportsbook can delay a withdrawal for legitimate reasons, such as identity verification, fraud review, or anti-money laundering compliance. But consumer-protection advocates argue that operators should not use vague reviews or promotional tactics to keep customers gambling.

Is fraud prevention the reason for my delayed withdrawal?

Critics say online sportsbooks sometimes use fraud prevention as a cover for slow withdrawals.

While fraud is a real issue for betting sites, users shouldn’t face unnecessary compliance or KYC (know-your-customer) checks when they want their money. Operators need time for legitimate reviews, but these should not be a blanket justification for slow payments.

A sportsbook can prevent fraud without vague review periods to keep customer funds.

What is a withdrawal reversal?

A withdrawal reversal occurs when a bettor requests a payout and then cancels the withdrawal before the funds are sent. This can be risky for people experiencing gambling harm because the money can quickly be wagered again.

Should sportsbooks be allowed to offer bonuses to cancel withdrawals?

No. Offering a bonus to cancel a withdrawal is a harmful practice. It can encourage consumers to keep gambling rather than withdraw money from the platform.

Which states have looked at sportsbook withdrawal protections?

New Jersey has rules and proposed legislation addressing withdrawal reversals and incentives. Connecticut considered withdrawal protections in HB 5229, but those provisions were removed before final passage.

New York has also considered similar withdrawal restrictions through regulation rather than legislation.

Image by Oleksandr Pidvalnyi from Pixabay