FanDuel to Stop Accepting Credit Card Payments Starting March 2

FanDuel’s New Payment Policy to Protect Customers

FanDuel has announced that it will no longer allow credit cards as a payment method for its sportsbook, casino, and racing services in the United States beginning March 2. This move is part of the company’s efforts to enhance player protection by reducing the risks associated with credit card gambling transactions.

Following Industry Trends Toward Safer Gambling

This change brings FanDuel in line with other major operators, such as DraftKings, who have already eliminated credit card payments for gambling activities. The decision comes after a detailed review of available payment options, reflecting a growing awareness of the potential dangers credit cards pose when used for betting purposes.

Concerns Over Credit Card Use in Gambling

While credit cards remain a common payment tool in the US, their use for gambling can lead to serious financial problems. Gamblers may unknowingly spend beyond their limits, risking funds intended for essential expenses like bills and groceries. Additionally, some credit card transactions for betting carry substantial fees, sometimes charging $10 or more to fund a $20 bet, which can be an expensive hidden cost for users.

Regulatory and Industry Responses

Efforts to restrict credit card gambling have been gaining momentum. Certain US states, such as Illinois, have considered or implemented measures to limit credit card deposits for gambling. Globally, mature gambling markets like the United Kingdom and Australia have outright banned credit card use for online betting, demonstrating a trend toward stricter control of gambling finances.

Calls for Federal Action Against Credit Card Gambling

At the federal level, there is no mandate yet banning credit card gambling transactions, but prominent voices are advocating for change. Senator Elizabeth Warren has been a vocal critic, emphasizing the unfair fees and hidden costs—ranging between 3% and 5%—that credit card users face when funding gambling accounts. She urges lawmakers to establish a federal framework to prevent this practice and better protect consumers.

Global Developments and Future Outlook

New Zealand recently joined the ranks of countries prohibiting credit card gambling payments, underscoring the growing global effort to curb gambling-related harm. As more operators and jurisdictions take steps to eliminate credit card funding in gambling, the industry is moving toward safer and more transparent payment methods to support responsible gambling.