DraftKings Sportsbook Tests Crypto-to-Cash Funding in Four States
DraftKings is set to launch a crypto-to-cash option for sportsbook deposits.
DraftKings Sportsbook users in Illinois, Kentucky, Vermont and New Hampshire will soon be able to convert cryptocurrency into cash to fund their accounts. The sports betting operator still won’t allow direct cryptocurrency betting when it launches this option in the coming weeks.
DraftKings becomes the first major U.S. sportsbook to adopt a crypto-to-cash model.
Most states with legal sports betting block crypto as a payment method. Wyoming is the only state that explicitly approves crypto deposits, while Colorado and Virginia have permitted sportsbooks to accept deposits converted from crypto to fiat.
News of DraftKings’ plans surfaced after a Massachusetts Gaming Commission (MGC) meeting on Jan. 29. A new rule that took effect on Dec. 19 bars sportsbook operators in the Commonwealth from using crypto as a funding source.
DraftKings attempted to roll out the same crypto-to-cash model in Massachusetts but was declined approval by regulators.
One issue the conversion step addresses is price volatility. Cryptocurrency values can swing sharply. By converting funds into fiat first, DraftKings prevents account balances from rising or falling wildly due to changes in crypto prices.
Crypto Creates Compliance Headaches
Licensed operators and regulators often avoid crypto payments because of the compliance challenges they create. Sportsbooks must verify player identity, track sources of funds, and monitor suspicious betting activity. Crypto wallets lack personal identifying information, and funds can move across borders quickly, complicating oversight.
Operators also struggle to verify the source of funds, a critical element in preventing money laundering.
Still, crypto offers clear benefits. Transactions move much faster than traditional payments, letting players withdraw winnings in hours instead of days. Crypto also reduces the risk of credit card fraud and chargebacks.
DraftKings’ move toward crypto follows its decision to stop accepting credit card deposits in August 2025. The company cited concerns about players taking on debt to fund gambling as a major reason for the ban.
Similar credit card restrictions exist in several states, including Massachusetts, Illinois and Tennessee, as well as in established gambling markets such as the UK and Australia.
Prediction Markets Embrace Crypto
Offshore gambling sites have long relied on cryptocurrency payments. Borderless transactions and added discretion make crypto popular with players. That momentum is starting to spill into regulated sports betting.
At the same time, crypto plays a central role in the prediction markets space. Polymarket is a crypto-based platform, crypto-native exchanges such as Coinbase and Crypto.com offer their own prediction market products, and Kalshi has been expanding its crypto integration.
It remains unclear whether DraftKings Predictions, the sportsbook’s own prediction market platform, will eventually support cryptocurrency funding. For now, the platform limits deposits to debit cards, bank transfers, and Apple Pay.
The crypto-to-cash rollout reflects DraftKings’ cautious approach. Whether the model expands or leads to direct crypto payments could depend on how regulators balance compliance concerns with growing demand for faster, more flexible payment options.
Also read: DraftKings, FanDuel eye parlay-style prediction markets for Super Bowl
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