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As of October, 33 states allow sportsbook deposits using credit cards.
By John Brennan & Scott Erskine October 5, 2024 9:00 am ET 3 min read USATSI
Gen Z in particular is accustomed to modern forms of financial transactions, meaning that very few people have a savings account and even fewer have a checking account.
But they’re more likely to have a credit card, which in 33 US states can be used to deposit into legal sportsbooks.
However, six other states that have legalized sports betting (Massachusetts, Rhode Island, New Hampshire, Vermont, Iowa, and Tennessee) prohibit credit card deposits.
There’s a clear New England trend here, but neighboring states like Maine, Connecticut, and New York allow you to use their Visa or Mastercard on their sportsbook apps. This is sure to cause confusion.
Why do states differ on this issue?
At the end of the day, it seems like the focus will be on consumer convenience and consumer protection.
Sportsbook deposits are protected by the Fair Credit Billing Act, eliminating concerns about potential fraud. Also, many credit cards offer “rewards points” on spending, so bettors with sufficient discretionary income instead of deposits may prefer to use cards to collect those points. I don’t know. Even major sportsbooks do not charge fees for credit card deposits.
However, in this scenario, there will always be some bettors who do not have the cash to cover the deposit. This means that unless they have a very successful month of betting, they may end up being charged interest. Cases may exceed 20%. If you’re an even more affluent bettor, check directly with your bank of choice to ensure your sportsbook deposit isn’t treated as a cash advance and, as a result, charged fees that are even higher than traditional credit card interest. would be wise.
Further complicating matters, some states that allow sportsbook deposits with Visa and Mastercard do not offer the same convenience for users with American Express or Discover credit cards. that is not provided. Also, some major banks do not treat these proposed deposits as legitimate and are rejected. However, some smaller sportsbooks do not accept credit card deposits. The group also included industry startup Fanatics.
U.S. lawmakers may want to consider their own compromise proposal from their New York colleagues. Casual bettors can enjoy the convenience of credit card sportsbook deposits, but only up to $2,500 per year. Legislators considered this to be a type of standard that was unlikely to cause major economic disruption to certain consumers.
New York State Sen. Joseph Addabbo Jr., the state’s leader on gambling issues, introduced a bill earlier this year that would include similar maximums for that form of entertainment. This could help garner enough votes and sway lawmakers on the ground, where responsible gaming is a major concern.
Even sportsbooks aren’t always right
DraftKings operates a mobile sportsbook app in more than 20 states, five of which also happen to be among the six states that ban credit card deposits as sportsbook funds (Rhode Island is an exception). Additionally, each state’s regulations regarding sportsbooks have unique language.
DraftKings executives explained how “internal miscommunication” by some colleagues over the state’s credit card regulations led to the confusion, according to testimony at a Massachusetts Gaming Commission hearing earlier this month. explained.
Massachusetts sports betting regulations not only prohibit credit card deposits within the state, but also allow credit card funds added to a sports betting account from outside the state to be used for wagers placed in Massachusetts. It is prohibited.
