FanDuel Joins DraftKings in Ending Credit Card Deposits as Compliance Pressure Grows
FanDuel is scrapping credit card deposits, following DraftKings, as regulators tighten restrictions and enforcement actions highlight the risks tied to debt-funded wagering.
FanDuel will join DraftKings by stopping credit card deposits. The Flutter Entertainment-owned company announced that the change will take effect on March 2. In a statement, FanDuel said it spent several months reviewing which payment methods it should offer customers. The operator will no longer accept credit card deposits for sportsbook, racebook, or online casino.
FanDuel said it removed credit cards “to improve the deposit experience.” The platform still offers several alternatives, including debit cards, bank transfers, PayPal, and FanDuel prepaid cards. Users also won’t be able to fund PayPal accounts or prepaid cards with credit cards as a workaround.
States Tighten Credit Card Rules Amid Consumer Risk Concerns
Credit cards have become increasingly restricted, as many issuers treat gambling transactions as cash advances, which trigger additional fees and interest. U.S. Senator Elizabeth Warren said she recently asked sportsbooks to consider removing credit cards after some companies charged up to $10 on a $20 deposit.
She praised FanDuel for making the change:
Regulators in several states already ban credit card gambling because it allows players to borrow money to place bets. Unlike debit cards, credit cards don’t require funds to be available in a bank account, raising concerns about overspending and consumer risk.
A 2025 nationwide U.S. News survey found that roughly 25% of sports bettors reported missing at least one bill payment due to wagers. Meanwhile, 24% have used a cash advance on their credit card to place a bet, underscoring the real-world financial strain associated with betting.
States with active bans include Massachusetts, Vermont, Illinois, Tennessee, Rhode Island, Oregon, New Hampshire, and Iowa. Lawmakers in New York, New Jersey, and Virginia are also considering similar restrictions.
Outside the U.S., regulators in the U.K., Australia, and Ireland already enforce credit card bans.
DraftKings Faced Fines Before Pulling Credit Cards
DraftKings stopped accepting credit card deposits on Aug. 25 after users reported high interest charges and processing fees tied to cash advances.
The move followed a June fine from the Massachusetts Gaming Commission. DraftKings paid a state record $450,000 penalty after allowing credit card deposits in a state where such transactions are prohibited.
More than 200 users made 242 credit card deposits before the company corrected the issue. DraftKings cited software glitches when reporting the problem to regulators, but the MGC still imposed the fine, citing ongoing compliance failures.
FanDuel also reached a $110,000 settlement with the Indiana Gaming Commission in 2023 for credit card-related violations. Eight individuals used the same Arizona Federal Credit Union card to make 126 deposits totaling $145,367, even though none of them owned the card.
They later withdrew $136,908, including $35,605 in cash at Blue Chip Casino in Michigan City. While the casino reported the activity in March 2022, FanDuel did not notify regulators until July. Investigators found FanDuel failed to follow account funding rules, leading regulators to tie $90,000 of the total penalty directly to the fraud-related breach.
As both FanDuel and DraftKings move away from credit cards, the wider industry is increasingly standardizing on non-credit-based funding, prioritizing compliance and consumer protection over convenience.
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