DraftKings Introduces Crypto-to-Cash Payment Option Across Four States
DraftKings Expands Payment Methods with Cryptocurrency
DraftKings has recently announced a new feature allowing players in four states to fund their sports betting accounts using cryptocurrencies. This move marks an important milestone for the sportsbook and offers a fresh opportunity for cryptocurrency users who enjoy sports betting.
Launch of Crypto Deposits in Selected States
This update was officially revealed during a Massachusetts Gaming Commission meeting, though the new crypto deposit option will not be available in Massachusetts itself. Instead, DraftKings plans to implement crypto payments in Illinois, Kentucky, New Hampshire, and Vermont, with confirmations from regulators in Vermont and Kentucky backing this rollout.
The specific cryptocurrencies accepted have yet to be disclosed, but experts anticipate popular options like Bitcoin and Ethereum to be included. It’s important to note that any profits made through converting crypto to cash will be subject to taxes, as these gains are considered taxable income.
How the Crypto-to-Cash Process Works
Players won’t be placing bets directly with cryptocurrencies. Instead, DraftKings will use a crypto-to-cash system where deposits made in crypto are immediately converted into standard currency for betting purposes. Currently, Wyoming remains the only state permitting direct crypto wagers, while other states have not embraced this form of betting.
Some operators in other regions have allowed users to use cryptocurrency to buy gift cards, offering an alternative way to integrate crypto with betting practices. Massachusetts had considered trialing crypto-to-cash solutions but eventually decided against it, with regulators expressing concerns over the widespread adoption of cryptocurrency in gambling.
DraftKings Stops Accepting Credit Card Payments for Betting
In a related move, DraftKings has recently discontinued the use of credit cards for funding sports betting accounts. This change is part of wider efforts to reduce gambling-related harm by preventing customers from overspending beyond their means. Additionally, DraftKings highlighted concerns about credit card fees and interest charges, aiming to protect users from extra financial burden linked to cash advances and high interest rates.
