Is it Possible to Use a Credit Card for Sports Betting?

Using a credit card is typically considered a safe and convenient way to make purchases, often with the added benefit of earning cash back or rewards. However, when it comes to online sports betting, using a credit card may not always be straightforward.

Many popular U.S. sportsbooks accept various payment methods, including credit cards, for deposits. Whether you can use your credit card for sports betting, however, depends on factors such as the sportsbook, your state’s regulations, the credit card network, and the issuing bank.

For instance, certain states like Massachusetts and Rhode Island prohibit using credit cards to fund sports betting. The list of states with such restrictions is subject to change as gambling legislation evolves. In 2024, the Pennsylvania Senate introduced a bill to ban credit card use for fantasy league bets and online lottery.

### Credit Card Types and Online Sports Betting

Major payment networks like Visa and Mastercard are commonly accepted by sportsbooks, but acceptance can vary. DraftKings, for example, supports Visa, Mastercard, and Discover for deposits regardless of location, while American Express may only be accepted in certain states like New Jersey. Additionally, banks may flag and decline credit card transactions on betting sites for precautionary reasons, necessitating an alternative payment method.

### Costs of Using Credit Cards for Sports Gambling

Even if you can use your credit card for online sports betting, it’s worth considering whether you should. Here are four reasons why using a credit card for sports betting may not be ideal:

1. **Cash Advance Treatment**: Many banks treat transactions on gambling sites as cash advances, which begin accruing interest immediately without a grace period. Cash advance APRs are often higher than standard APRs—potentially up to 29.99% or more.

2. **Additional Fees**: Sports betting transactions considered cash advances typically come with a fee of $10 or 5% of the transaction amount, whichever is greater.

3. **Lower Credit Limits**: Credit card issuers often set lower limits for cash advances than for regular purchases, potentially restricting how much you can deposit into a sportsbook account.

4. **No Rewards**: Cash advances do not qualify for points, miles, or cash back, meaning you won’t earn any rewards on these transactions.

### Potential Financial Consequences

Using a credit card for sports betting can impact your finances beyond interest and fees. Research by UCLA and USC indicates that states with legalized sports betting have seen an increase in debt, delinquency, and bankruptcy rates.

“Using a credit card for online sports betting might be manageable for some but risky for others,” says Bruce McClary, Senior Vice President at the National Foundation for Credit Counseling. He cautions against gambling with money you can’t afford to lose, as credit cards can make it easy to overspend by viewing credit as personal funds.

Keith Whyte, Executive Director at the National Council on Problem Gambling, warns that digital payments can create a disconnect from the reality of financial losses. “There can be a disassociation from the amount of money you’re wagering or losing,” he says.

### Responsible Credit Card Use for Sports Betting

Experts advise setting spending limits and paying off balances quickly to avoid accruing high interest. McClary suggests limiting gambling expenses to 1% of your income to prevent significant financial impact. Tools such as daily spending caps or accountability partners can help control spending. For those struggling, non-profit credit counseling agencies and the National Problem Gambling Helpline (1-800-GAMBLER) offer support.

“Gambling should be recreational, not a means to make ends meet,” Whyte says. “Set a budget, and don’t gamble to make money.”