US Gambling: Credit Card Ban Spreads | DraftKings & Market Shift

The online sports betting landscape is undergoing a significant shift as major players move to restrict the use of credit cards for deposits. Following an initial move by DraftKings last summer, FanDuel announced on February 12, 2026, that it will no longer accept credit card deposits, effectively eliminating a substantial portion of payment options for online bettors in the United States.

The decision by FanDuel, which takes effect on March 2, 2026, mirrors a similar policy implemented by DraftKings. Together, the two companies control more than 70% of the U.S. Online sports betting market, according to data from Casino Reports, making this a sweeping change with broad implications for the industry and its customers.

While the timing of FanDuel’s announcement came shortly after Senator Elizabeth Warren, D-Mass., publicly criticized the sports gambling industry for the costs associated with credit card transactions, a FanDuel spokesperson stated that the decision was “in the works for far longer.” The company framed the move as an effort to “improve the deposit experience for our customers,” suggesting a focus on responsible gambling and financial well-being.

The shift away from credit card deposits comes as regulators and financial institutions increasingly scrutinize the potential risks associated with gambling on credit. As DraftKings noted in its own announcement last August, the use of credit cards can lead to cash advance fees, high interest rates, and potential debt exposure for bettors. By removing this option, both companies are positioning themselves as proponents of responsible gambling practices.

DraftKings’ initial decision, announced on August 25, 2025, was described as a proactive business decision, though it followed a 2025 fine of $450,000 in Massachusetts for failing to prevent illegal credit card deposits. The company’s move was also seen as a response to growing regulatory pressure, particularly in Illinois, where new restrictions were being introduced. DraftKings, in effect, chose to exceed regulatory requirements and set a new standard for the industry.

The broader industry context reveals a growing trend toward stricter payment controls. Several other sports betting operators, including Fanatics Betting & Gaming, Betr, and Sporttrade, had already implemented similar bans on credit card deposits prior to the moves by DraftKings and FanDuel. This suggests a collective recognition of the potential harms associated with credit-based gambling and a desire to mitigate those risks.

The change in payment policies will require bettors to utilize alternative methods, such as debit cards, PayPal, ACH transfers, Venmo, and cash deposits at physical locations. While these options may offer greater financial protection, they could also introduce new complexities or inconveniences for some users.

Senator Warren’s response to FanDuel’s announcement underscored the broader political pressure on the industry. She urged other sports betting companies to “follow suit” and eliminate credit card funding, signaling a potential for further regulatory action if the industry does not proactively address concerns about responsible gambling.

The impact of this shift extends beyond individual bettors and the two dominant companies. With DraftKings and FanDuel accounting for such a large share of the market, their decisions are likely to influence the behavior of smaller operators and shape the future of online sports betting in the U.S. The move also highlights the increasing importance of responsible gambling initiatives and the need for industry stakeholders to prioritize consumer protection.

The stated rationale from FanDuel – improving the deposit experience – is a subtle but important framing. It suggests the company believes the long-term health of the market depends on fostering sustainable betting habits, rather than maximizing short-term revenue through potentially risky payment options. This approach could resonate with regulators and consumers alike, positioning FanDuel as a leader in a rapidly evolving industry.

The industry-wide move away from credit cards isn’t simply about avoiding regulatory scrutiny or fines. It’s a calculated response to a changing understanding of the risks associated with online gambling and a growing awareness of the need for responsible practices. As the market matures, expect to see further emphasis on consumer protection and a continued effort to align the industry with broader financial regulations.