BetMGM is Latest iGaming Operator To Ban Credit Card Payments
Credit: Sarah Stierch/Wikimedia Commons
BetMGM will soon eliminate credit card deposits for all U.S. customers.
As of March 31, customers can’t add new cards to their accounts. The phasing out continues from there until credit card deposits go away entirely. BetMGM has not revealed a final date for the deposits.
The operator revealed the policy change during a March 25 meeting of the Pennsylvania Gaming Control Board (PGCB). During that meeting, the board fined BetMGM $100,000 for insufficient know-your-customer protocols. Senior legal counsel Joseph Caputi and Chief Compliance Officer Rhea Loney attended on BetMGM’s behalf.
During their appearance, PGCB Chair Denise J. Smiley asked BetMGM if it was “looking at credit cards and how they’re utilized.”
In response, Caputi quickly said yes. Loney then followed up, confirming BetMGM’s plans to eliminate credit card use.
Loney said:
“In the coming days, as of March 31, we will no longer be allowing credit cards, new credit cards to be added to the accounts for individuals, and it is a phasing out of credit card usage on the BetMGM platforms.”
Gaming America contacted BetMGM to clarify details of the phase-out plan. BetMGM did not provide a response at the time of writing.
Voluntary Credit Ban Catching On Among Operators
BetMGM’s new credit card ban aligns with the in-house policies of a growing number of U.S.-facing gambling operators.
DraftKings banned credit cards on its platforms last August.
In a statement to the media, the company said the change was a “strategic” decision.
“DraftKings has made the strategic business decision to remove credit cards as a deposit option for sportsbook and casino in the United States. 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. 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.”
Earlier this year, FanDuel followed suit, telling media that it would no longer accept credit cards as of March 2.
“Over the last few months, FanDuel has been evaluating the payment methods that we offer to customers and made the decision to remove credit cards as an option for our sportsbook, casino, and racing product in the United State[s]. This change was made to improve our deposit experience for our customers.”
Fanatics Betting and Gaming, another major U.S. operator, has never allowed US customers to fund accounts using credit.
Warren Asks Operators for Details on Credit Use
Less than a week before FanDuel’s announcement, Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, Sen. Elizabeth Warren, wrote to several U.S. operators. The letters asked that the companies provide details on “abusive credit card betting fees that rip off Americans using sport-betting platforms.”
According to a 2024 Consumer Financial Protection Bureau report that Warren referenced, credit card cash advances spiked after the U.S. legalized sports gambling.
From that report:
“Some consumers placing bets may be in for a shock, finding their credit card issuer charged $10 or more in ‘cash advance’ fees and added interest for each sports gambling transaction made with a credit card.”
According to Paysafe data, between 19% and 24% of worldwide consumers used credit to gamble in 2024, Statista reports.
Image credit: Sarah Stierch/Wikimedia Commons (license)
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