DraftKings Sportsbook will allow players in four states to fund sports betting accounts by converting cryptocurrency tokens into cash.
Word of this new sportsbook deposit method comes by way of DraftKings' Chief of Sports Wagering, Carrie Torrisi, who disclosed plans for crypto-to-cash payments at a meeting with the Massachusetts Gaming Commission (MGC) on January 29.
It was also confirmed by DraftKings Chair Jordan Maynard that crypto-to-cash sportsbook deposits will be permitted in select states during an initial trial: Illinois, Vermont, Kentucky and New Hampshire.
Anti-crypto stance preventing expanded trial
Despite DraftKings' new crypto-to-cash deposit option being revealed during a meeting with Massachusetts regulators, the online sports betting site will not integrate such a transaction system in the state.
Early plans had included The Bay State as one of five US jurisdictions to debut crypto-based transactions, but an MGC decision in December to prevent players from converting cryptocurrency tokens into real money halted progress.
Speaking in December 2025, Director of the MGC Investigations and Enforcements Bureau (IEB), Caitlin Monahan, outlined the commission's reasoning for steering away from crypto-adjacent payment systems:
"We believe, basically, crypto is not ready for primetime. We really don't think at this moment in time, in this regulatory structure, it is a funding source that is ready to be incorporated and that we want to be encouraging."
Monahan referenced apprehension tied to lacking regulation and anti-money laundering protocols as primary reasons for retreating from the project.
Crypto a valid "cash equivalent" say Vermont and Kentucky
Other states carry an alternative viewpoint – with representatives from Kentucky and Vermont telling SBC Americas that cash equivalents are legal funding sources, including crypto.
Kentucky's Director of Sports Wagering, Hannah Simms, explained that local state laws are wholly compatible with digital virtual currencies:
"Kentucky's sports wagering regulations directly contemplate the use of digital, crypto and virtual currencies. Sports wagers may be made using forms of payment approved by Kentucky Horse Racing & Gaming including 'cash equivalents converted to cash.' The definition of 'cash equivalent' includes 'digital, crypto and virtual currencies'."
Simms elaborated on the crucial collaboration between the Kentucky Horse Racing and Gaming Corporation (KHRG) and DraftKings to pave the way for crypto-to-cash payments:
"KHRG staff worked with DraftKings to evaluate their proposal. This included a full product walkthrough, review of any vendors involved and confirmation that the system underwent appropriate testing. Following that process, KHRG approved the method for use in Kentucky as it satisfies our regulatory requirements."
Director of Communications and Legal Affairs for the Vermont Department of Liquor and Lottery, Hannah Chauvin, echoed those sentiments.
Cash-to-crypto replacing credit cards at sportsbooks?
Following restrictive laws in several partner states, DraftKings Sportsbook relinquished credit cards as a payment method in August 2025. It is a monetary gap that has not since been filled.
Crypto-to-cash payments could be considered a viable replacement for credit cards – the latter being admonished for potentially increasing player exposure to gambling harms.
Sportsbooks may leverage Bitcoin, Ethereum and other popular digital currencies if DraftKings' limited pilot is successful.
Attention now turns to the four test states, where DraftKings will unlock crypto-to-cash conversions via licensed vendors.
