DraftKings has announced that it will no longer accept credit card deposits for sportsbook and casino operations in the United States starting 25 August 2025. The move from the sportsbook comes amid growing regulatory pressure and a broader effort to protect consumers from high-interest credit card debt and cash advance fees.
“DraftKings has made the strategic business decision to remove credit cards as a deposit option for sportsbook and casino in the United States,” a company spokesperson told SiGMA News. “Customers can still fund their DraftKings Sportsbook and casino accounts using debit cards, bank transfers (ACH), wire transfer, and payment platforms like PayPal, Venmo or Apple Pay (with an eligible payment method, such as a debit card), where permissible.”
The credit card deposit ban applies across all US jurisdictions where DraftKings operates, and stored credit cards on customer accounts will be disabled later this month. The spokesperson added, “The change is intended to help customers avoid cash advance fees and higher interest rates often associated with this payment method and otherwise improve the deposit experience.”
Why DraftKings is banning credit card deposits?
While DraftKings says the move is designed to “improve the user experience,” the timing closely follows a $450,000 fine by the Massachusetts Gaming Commission (MGC). Regulators found that DraftKings accepted more than $83,000 in illegal credit card deposits in Massachusetts during the year 2023 and 2024. This is in direct violation of a state law that explicitly bans credit card funding for any form of gambling. However, the DraftKings spokesperson has said that the penalty “did not influence” the decision of banning credit card deposits in the US.
The company self-reported the violations, attributing the issue to internal miscommunication. The company alerted regulators in May 2023 and said it had rolled out software fixes. But regulators later found that those fixes failed to address the underlying issue, allowing the violations to continue unchecked. In response, DraftKings refunded 218 affected customers and agreed to a third-party audit of its Massachusetts operations, which began in 2023.
“Credit cards still can be used to deposit in Ontario.”
-DraftKings spokesperson
DraftKings had successfully complied with credit card deposit bans in other states, including Tennessee, Iowa, New Hampshire, Oregon, Rhode Island, Vermont, and Illinois. The Illinois Gaming Board (IGB) recently expanded its credit card prohibition to cover both online sports betting and casino gaming.
DraftKings reapplies for NFA despite ruling out prediction markets in 2025
In a separate strategic move, DraftKings is now positioning itself to enter the US prediction markets industry. On 24 June, the company filed a new application with the National Futures Association (NFA) under Gus III Holdings LLC, seeking approval to operate as both a Swap Firm and an Introducing Broker. This comes despite the company’s fiscal guidance for 2025 stating that it “does not include the potential launch of a Prediction Markets offering.”
It marks DraftKings’ second attempt at joining the NFA, after previously withdrawing an application under Gus II Holdings. The new filing includes key executives such as Chief Executive Officer (CEO) Jason Robins, Chief Financial Officer (CFO) Alan Ellingson, and co-founder Paul Liberman. Robins previously told investors during the company’s Q2 earnings call that DraftKings is “actively exploring” prediction markets and monitoring the evolving legal landscape.
The NFA application could pave the way for DraftKings to launch or partner in event contract exchanges similar to prediction market platform Kalshi, which is currently regulated by the US Commodity Futures Trading Commission (CFTC). DraftKings has reportedly explored acquiring Railbird, a firm already approved by the CFTC as a Designated Contract Market (DCM).
A company spokesperson had previously told SiGMA News, “DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions.”
The company previously applied for a federal licence to operate its own prediction market, only to quietly withdraw in April. At the time, a spokesperson was quoted as saying, “DraftKings continues to monitor developments related to prediction markets as an emerging product that reflects evolving consumer engagement and warrants thoughtful consideration.”
Rising competition in prediction market space
DraftKings is trying to enter a space already drawing interest from other major fantasy sports and betting operators. Sports betting giant and rival FanDuel recently announced a partnership with derivatives marketplace CME Group to create a new joint venture aimed at launching an event contracts platform. Underdog had also applied to enter the space in April under UDM LLC and G&B Broker. PrizePicks filed under Performance Predictions II LLC in May, while Fanatics Betting & Gaming filed under Morton St. Trading OpCo, later expanding its request to include Forex Firm status.
While NFA membership is not required for DCMs, it is mandatory for Futures Commission Merchants (FCMs), who serve as intermediaries between customers and exchanges. The application process includes thorough background checks for principals and strict adherence to ethical standards.
Industry analysts believe the potential of prediction markets is massive. Robinhood, which connects users to Kalshi as an FCM, processed $1 billion in trades in Q2 2025, generating an estimated $10 million in revenue with minimal operating costs. On 30 July, the company published its financial results, reporting total revenue of $989 million. The profit figure exceeds the 2024 result by 45 percent.
Meanwhile, DraftKings reported a record-breaking second quarter, with revenue jumping 37 percent year-on-year to $1.513 billion, surpassing expectations. The Boston-based gaming giant posted net income of $158 million for the quarter ending 30 June, a sharp improvement from $63.8 million in Q2 2024. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) more than doubled to $301 million, up from $127.9 million a year earlier.
