DraftKings Ends Credit Card Deposits in the US
DraftKings has announced that it will no longer accept credit card deposits from US players, citing its ongoing commitment to responsible gambling and reducing overspending risks. The change affects all DraftKings casino, sportsbook, and daily fantasy users nationwide.
DraftKings will no longer accept credit cards for deposits. © The Digital Way, Pixabay
Key Facts:
- DraftKings discontinues the use of credit cards for deposits.
- The platform says the move is aimed at preventing cash advance fees and high interest rates.
- The move will also ensure compliance in states where credit card deposits are banned.
Credit cards have long been seen as a double-edged sword in online gaming. They allow players quick access to funds, but regulators and experts cite them for fueling overspending and debt. By ending card deposits, DraftKings says it is making a proactive move that will help promote safer gambling habits across its entire user base.
Alternative Payment methods
Players still have lots of ways to load funds. DraftKings still supports debit cards, online banking, Play+, Venmo, wire transfers, etc. Many of these methods process instantly and don’t have associated advance fees or carry usurious interest rates, which means most players can find a workaround that will cause little disruption.
Industry Context
DraftKings is about as big as it gets in US iGaming, so everyone else watches anything it does closely. This policy shift will likely spill over into the broader ecosystem.
Some states have already banned credit cards, with more likely to follow. While this move comes voluntarily and was framed as an effort to set the industry standard, it’s more likely proactive to get ahead of changing regulations.
Player Protections
There has been heightened scrutiny of credit card usage, spiraling debt and its overall impact on a customer’s risk factor when it comes to responsible gaming, especially for those chasing losses.
By getting ahead of the conversation now, DraftKings avoids last-minute changes due to new laws and a patchwork of state regulations that will likely overly complicate the use of credit cards for national operators in the years ahead.
Support for Safe Play
If you or someone you know is struggling with gambling or gambling-caused debt, resources are available. Players in the US can call 1-800-gambler for confidential help or use free tools like BetBlocker to help set limits across devices.
What Does It Mean
For most casual players, it will mostly come down to convenience. Debit cards or PayPal are already used by the vast majority of players to avoid fees and interest, so the shift shouldn’t be a deal breaker for most.
However, for the small minority using debt to finance their play, it may be time have a hard look at their finances.
Most analysts believe that the financial impact on DraftKings will be minimal, with some highlighting that the company might even gain favor with some state regulators for acting as a role model for others with their best practices in player protection. If they convince other online casino operators to act on credit cards, then state legislatures won’t need to.
Final Thoughts
DraftKings is sending a clear message that responsible play matters by cutting off credit card deposits. While it may add an extra hurdle for a small number of users. The benefits of reduced debt, lower fees, and stronger safeguards are bound to outweigh the inconvenience.
It’s a bold step that should win over gambling harm experts as well as gaming regulators, and may force competitors to follow suit.
