US sportsbooks cut credit card use in evolving risk strategy
The US iGaming market is shifting as sportsbooks move away from credit card deposits. DraftKings and FanDuel, which together represent about 72 to 75 per cent of the US online sports betting market, have implemented nationwide bans on credit card funding for betting accounts. This represents a significant change for the industry.
This is largely due to regulatory actions in several states and increased criticism of credit-based betting, especially regarding debt exposure and player protection. Operators are now prioritising alternative payment methods, including debit cards, bank transfers, and digital wallets.
In a recent conversation with SiGMA News, Stephen Crystal, Founder of SCCG Management, pointed to similar industry dynamics shaping this transition.
In his initial response, Crystal explained that the rationale behind delinking credit cards goes beyond simple compliance, pointing instead to a mix of responsible gaming concerns, regulatory clarity, and payment efficiency. He said, “I would describe the market this way: delinking started as a compliance issue in some states and cities, but it is evolving into a larger industry norm. Operators gain consistency across states, reduce regulatory exposure, and strengthen their responsible gaming posture.”
“Credit cards are structurally different from debit cards or bank transfers because they allow players to fund wagering with borrowed money,” he added.
Changing regulatory momentum
Crystal also pointed to regulatory momentum in the US, including enforcement actions such as the fine imposed on DraftKings, which accelerated the shift. In recent times, several state regulators and gaming commissions have taken measures like introducing bans and penalties aimed at reducing problem gambling.
Last year, the Massachusetts Gaming Commission fined DraftKings $450,000 and also started an investigation against Caesars Sportsbook over violations. Similar measures have been adopted in states such as Illinois, Iowa, and Tennessee.
Earlier lawsuits were mainly filed against credit card companies, not operators, and were largely dismissed by courts. Crystal stressed, “Moves by FanDuel and BetMGM to remove credit card deposits show that operators are now acting proactively rather than waiting for legal mandates.”
Move to moderate user behaviour
On user behaviour, Crystal noted a clear shift in how players fund their accounts. “The most immediate effect is that deposits become more intentional,” he said, explaining that users are now relying on debit cards, bank transfers, and cash-backed digital wallets. “This reduces impulsive top-ups and ties spending more closely to available funds, while this may slightly change deposit patterns”. He added that it is unlikely to impact overall revenues, as many high-value users already prefer bank-linked methods.
– Stephen Crystal, Founder and CEO, SCCG Management
“Once the alignment happens, the question no longer stays ‘Why ban credit cards?’ and becomes ‘Why keep them?'”
Crystal also suggested that the industry is moving towards a common standard. With DraftKings leading the shift in 2025, followed by FanDuel and BetMGM in 2026, the alignment among major operators signals a broader transition. “Delinking started as a compliance issue… but it is evolving into a broader industry norm,” he said, noting that once such alignment occurs, the debate shifts from why to remove credit cards to why retain them at all.
What about alternatives?
Regarding alternative payment methods, Crystal said the transition is underway, with users adopting debit, Automated Clearing House (ACH), bank transfers, and mainstream wallets. He noted that while crypto may play a role, its use remains limited in regulated markets. “The major drift is still toward debit and bank-linked payments, not toward pure crypto betting,” he said.
The move away from credit cards marks a major change in the US sports betting market. As regulatory pressure increases and leading operators align payment strategies, the focus is shifting to more controlled and transparent funding methods.
As more states review their policies and operators standardise practices, Crystal believes the shift to alternative and bank-linked systems will shape user interaction with betting platforms in the near term.
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