Credit cards are a popular and generally secure way to make purchases, often with perks like cashback or travel rewards. However, when it comes to online sports wagering, using a credit card isn’t always an option—and even when it is, it may not be the wisest choice.
Many U.S.-based sportsbooks allow credit card deposits, but whether you’re able to use yours depends on several factors, including the sportsbook’s policies, your state’s gambling regulations, your card’s issuing bank, and the payment network involved.
For example, in states like Rhode Island and Massachusetts, funding a betting account with a credit card is explicitly banned. These legal restrictions may shift as gambling laws continue to evolve. In fact, Pennsylvania lawmakers proposed a 2024 bill that would block credit card use for fantasy sports betting and online lottery games.
Credit Cards and Their Role in Online Wagering
Most sportsbooks support major card networks like Visa and Mastercard. Platforms like DraftKings typically accept Visa, Mastercard, and Discover, while American Express may only be usable in select jurisdictions, such as New Jersey. Still, some financial institutions may reject gambling-related transactions altogether, forcing bettors to seek alternative payment methods.
Why Credit Cards May Not Be Ideal for Sports Betting
Even when permitted, using a credit card for sports gambling might come with some significant drawbacks:
- Treated as a Cash Advance
Many card issuers categorize gambling transactions as cash advances, which come with high interest rates and no grace period. Cash advance APRs can be steep—some exceeding 29.99%. - Hefty Fees
Cash advance transactions often incur additional charges—commonly either $10 or 5% of the transaction, whichever is greater. - Limited Access to Credit
The amount available for cash advances is often far less than your overall credit limit, which could restrict how much you can wager. - No Perks or Points
Unlike standard purchases, cash advances typically don’t qualify for loyalty points, cashback, or other rewards.
The Broader Financial Impact
Beyond fees and interest, using borrowed money to place bets can create long-term financial stress. Research by UCLA and USC suggests that legalized sports betting has coincided with increased levels of personal debt, missed payments, and even bankruptcies.
Bruce McClary from the National Foundation for Credit Counseling warns that while some people may manage this risk, others may spiral into financial trouble—especially since credit cards can create the illusion of spending your own money.
Keith Whyte of the National Council on Problem Gambling echoes this concern, noting that digital payments often detach users from the real-world consequences of their spending habits. “It’s easy to lose sight of how much you’re really betting—or losing,” he explains.
Safer Betting with Credit Cards
If you choose to use a credit card, experts recommend doing so cautiously. Setting firm limits, treating gambling as entertainment rather than income, and paying off your balance quickly can help minimize harm. McClary recommends restricting gambling to no more than 1% of your monthly income.
Tools like spending caps, time limits, or enlisting a trusted friend for accountability can be effective. Those experiencing difficulties can turn to non-profit credit counseling services or contact the National Problem Gambling Helpline at 1-800-GAMBLER.
As Whyte puts it, “Gambling should be fun—not a financial strategy. Stick to a budget and know when to stop.”