In a recent hearing with the Pennsylvania Gaming Control Board, BetMGM has announced plans to phase out credit card deposits for online betting accounts as of March 31st. The move reflects a broader industry trend toward tighter controls on how users fund wagers in an effort to emphasize responsible gaming.
BetMGM is joining other major U.S. operators by removing credit cards as a funding option for sports betting accounts.
DraftKings made a similar change in August, ending credit card deposits across its licensed U.S. sportsbook and casino platforms. The company said the decision was intended to help users avoid costly fees and high interest rates tied to credit-based transactions.
The move followed a $450,000 penalty from the Massachusetts Gaming Commission, which cited multiple violations involving credit card use. Massachusetts regulations prohibit such payments, including those initiated outside the state.
Beyond Massachusetts, several other states prohibit the use of credit cards for sports betting, including Iowa, Illinois, Oregon, New Hampshire, Rhode Island, Tennessee, and Vermont.
Earlier this month, FanDuel also removed credit cards as a deposit method in the U.S. Like DraftKings, FanDuel also received a fine, this time in Iowa, for illegal credit card transactions back in 2022.
Current operators still allowing credit card deposits at their U.S. sportsbooks include Caesars Sportsbook, BetRivers, and Hard Rock Bet.
BetMGM’s decision to eliminate credit card deposits appears closely tied to recent regulatory action in Pennsylvania. The operator agreed to pay a $100,000 fine following an investigation by the Pennsylvania Gaming Control Board into failures related to fraud prevention.
According to regulators, BetMGM did not adequately stop the creation and use of multiple accounts tied to stolen identities. Some of these accounts were funded with compromised payment methods, raising concerns about oversight and security.
The investigation uncovered four separate fraud schemes, including one that operated for more than two years and involved over 100 fraudulent accounts placing nearly $900,000 in wagers.
In this context, the move to remove credit card funding can be seen as part of a broader effort to strengthen controls and reduce fraud risk.
Eliminating credit card deposits is a key step in promoting responsible gambling across the U.S. sports betting industry.
Using credit cards allows bettors to gamble with borrowed money, which can lead to debt accumulation and high interest charges. It also increases the likelihood that a bettor will engage in compulsive gambling by attempting to chase their losses.
By restricting this option, sportsbooks aim to encourage players to use funds they already have available, creating a more controlled betting environment.
