DraftKings Fined $450,000 in Massachusetts for Allowing Credit Cards
Posted on: August 1, 2025, 12:11h.
Last updated on: August 3, 2025, 08:59h.
- DraftKings allowed online sportsbook customers in Massachusetts to use credit cards
- The Massachusetts Gaming Commission bars the use of credit cards
- DraftKings was fined $450,000 for regulatory noncompliance
Boston-based DraftKings has been fined by gaming regulators in the sports betting and iGaming operator’s home state after it was determined that its online sportsbook platform allowed users to make account deposits with credit cards.
The Massachusetts Gaming Commission (MGC) found that DraftKings, in violation of the commonwealth’s sports betting regulations, permitted some customers to use credit cards to make deposits into their online sportsbook accounts.
An MGC probe led by the MGC’s Investigations and Enforcement Bureau determined that at least 218 DraftKings sportsbook patrons were allowed to make 242 credit card deposits. The deposits totaled $83,667.92.
“No deposits may be made by credit card, either directly or indirectly, including without limitation through an account funded by credit card, and no wagering on credit is allowed,” the MGC’s Sports Wagering Account Management regulations state.
Large Fine Warranted
The MGC didn’t mince words in coming down hard against the sports betting giant, which controls the online wagering market with rival FanDuel. In a noncompliance order levying a $450,000 fine against Crown MA Gaming, LLC, doing business as DraftKings, the five MGC commissioners said DraftKings did not dispute that credit cards were used on its online sportsbook platform in Massachusetts.
“There is a preponderance of evidence showing that these violations occurred. In fact, DraftKings does not dispute any of the relevant facts… Instead, DraftKings contends that its noncompliance was based on a fundamental misunderstanding of the prohibition at issue and did not constitute purposeful contravention of the law and regulations,” the MGC wrote.
Despite framing the matter as a ‘misunderstanding’ or an ‘anomalous series of events,’ it is undisputed that DraftKings’ actions and inactions constitute both statutory and regulatory violations,” the statement continued.
The $450,000 fine against DraftKings isn’t the only financial damage caused by the regulatory noncompliance. The MGC additionally ordered DraftKings to return the $83,667.92 in credit card deposits back to the bettors who made them.
DraftKings must also develop a corrective action plan to ensure that no credit card deposits will be accepted in the future.
The online gaming operator must also undergo an internal review from an independent third-party auditor to ensure that no other credit card deposits were allowed. DraftKings has 180 days to complete the audit.
Credit Check
Massachusetts and the other states that do not allow online sportsbooks and/or iGaming players to fund their accounts with credit cards say such a prohibition is in the public’s best interest. Responsible gaming advocates also encourage gamblers never to play on credit.
Still, some online sports betting states do not exclude the use of credit cards. Along with increased financial concerns, using a credit card to gamble online can be costlier than using a debit card, as many banks consider credit deposits for sports betting and online gaming products cash advances. As such, they can come with hefty fees.
Many online sports bettors have complained about unknowingly being subjected to credit card fees for transactions related to their wagering activities. The Consumer Financial Protection Bureau says the seven largest credit card issuers all consider legal gaming and sports betting via credit card as cash advances.
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