DraftKings fined $450,000 by Massachusetts regulator for credit card wagering violations
Operator failed to block credit card-funded wagers for nearly a year despite explicit state rules.
Key points:
– DraftKings accepted over $83,000 in wagers funded by credit cards between March 2023 and February 2024
– Massachusetts law explicitly prohibits credit card use for sports betting
– The MGC ordered DraftKings to return funds, improve compliance and undergo an independent audit
The Massachusetts Gaming Commission (MGC) has fined DraftKings $450,000 following a year-long failure to block the use of credit card funds for online sports betting in the state – a violation of both state law and regulatory requirements.
The ruling, issued on 25 July 2025, found that DraftKings accepted 1,160 impermissible wagers funded by 242 credit card deposits from 218 customers, totalling $83,667.92 in handle.
Under Massachusetts law, credit card funding is strictly prohibited for sports betting accounts.
The Commission noted multiple failures by DraftKings to implement effective fixes. Although the company self-reported incidents in May 2023, July 2023 and February 2024, each update designed to resolve the issue was later found to be ineffective.
The Commission concluded that internal miscommunication and inadequate oversight were significant contributing factors.
Good to know: Credit card bans for online sports betting are designed to limit financial risk and promote responsible gambling in regulated US markets
the MGC wrote in its official decision: “Despite framing the matter as a ‘misunderstanding’ or an ‘anomalous series of events’, it is undisputed that DraftKings’ actions and inactions constitute both statutory and regulatory violations.”
DraftKings launched its Massachusetts sportsbook on 10 March 2023 under a temporary Category 3 licence. Before launch, the MGC had issued direct communications to all operators – including DraftKings – reiterating the statutory prohibition on credit card use.
However, the Commission found these directives were not shared with the appropriate compliance teams internally.
In addition to the financial penalty, DraftKings is required to return the full $83,667.92 to the affected customers, submit a corrective action plan to prevent future violations and commission an independent audit to ensure no additional credit card-funded wagers occurred between February and March 2023.
This is the latest enforcement action from the MGC, which last year introduced an official seal for licensed sportsbooks to promote consumer protections and distinguish regulated platforms from illegal operators.
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