Online casino and sportsbook operator, FanDuel, has announced it will no longer accept credit card payments from US customers. The decision mirrors one made by competitor DraftKings last year and is expected to come into effect in March.
The decision comes a few days after Massachusetts Senator Elizabeth Warren sent letters to sportsbook operators requesting information on credit card payments and fees.
FanDuel has said the timing is purely a coincidence, and that the company "has been evaluating the payment methods that we offer to customers" before going on to say they "made the decision to remove credit cards as an option for our sportsbook, casino and racing products in the United States."
Between them, FanDuel and DraftKings hold roughly two-thirds of the sportsbook market share. FanDuel holds the majority share and operates in more than 20 states, as well as Washington DC and Puerto Rico.
Most recently, it launched in Missouri in December 2025, when the state fully regulated the market. Similarly, it has been active in Massachusetts since the market was regulated in 2023.
Consumer protection enhancements
In a recent bid to improve the market and ensure consumer protection, Massachusetts Senator Elizabeth Warren has taken aim at credit card fees. As part of this, she approached the state's sportsbooks asking for details of credit card payments and associated fees, while highlighting the fact that some consumers are being forced to pay $10 fees on $20 deposits.
The high fees are attributed to the fact that, in the vast majority of cases, credit card sportsbook deposits are treated as cash advances. These have higher fees than credit card purchases, and interest can start accruing immediately after the deposit.
Credit card deposits are banned in some markets. Notably, the UK Gambling Commission has banned credit cards since 2020. And several US states, most importantly including Massachusetts itself, have taken similar action.
The UKGC highlighted the fact that, in some instances, players were gambling with money they could not afford to pay back.
Two days after Senator Warren sent letters to sportsbooks, FanDuel announced it would stop accepting credit card payments across the US.
Members are now met with a message on their account deposit screen informing them of the impending change. Although no date has been officially given, experts have pointed to March 2 as being the likely cut-off date.
FanDuel's move will affect all US customers, not just those in Massachusetts who are already prohibited from using credit card deposits, and the company has said the timing is purely coincidental.
FanDuel the latest operator to prohibit credit cards
The company is not the first sportsbook to make the move. In summer last year, rivals DraftKings made the same announcement. Its decision came after the Massachusetts Gaming Commission issued a $450,000 fine.
The fine was for accepting deposits from digital wallets funded by credit cards in other states. DraftKings also prohibited players from using digital wallets funded by credit cards, but would allow payment methods like PayPal, when funded by debit cards or bank payments.
Fanatics Betting & Gaming, Betr, and Sporttrade have also enacted similar measures.
