The regulated sports betting market in the United States is still expanding, but in 2026 it began to show a structural shift that goes well beyond handle and revenue. The leading operators are reducing — and in some cases removing altogether — the use of credit cards to fund betting accounts. This is not driven by a single factor. It reflects a combination of regulatory pressure, increasing scrutiny of consumer debt exposure, and a more disciplined approach to transactional risk management. In a market that continues to grow, the focus is gradually shifting towards revenue quality, operational sustainability and risk control.
The broader context supports that shift. According to the American Gaming Association, the US sports betting industry generated USD 166.94 billion in wagers in 2025, 11% more than in 2024, and delivered USD 16.96 billion in revenue, up 22.8% year-on-year. These figures confirm continued expansion, but they also highlight a key transition: the industry is no longer judged solely on growth, but on how that growth is financed and sustained.
The first decisive moves came from operators. DraftKings, FanDuel and BetMGM each took steps — at different times — to eliminate or restrict credit card deposits. The pattern is clear: even in jurisdictions where regulation still allows it, companies are choosing to act ahead of regulatory enforcement, limit exposure, and align with tightening compliance standards. This is not a reactive move. It is a strategic repositioning of payment frameworks.
At the same time, the issue has gained political traction. In February, Senator Elizabeth Warren, through the Senate Banking Committee, requested information from operators regarding the use of credit in betting, particularly transactions processed as cash advances carrying fees of between 3% and 5% of the deposit amount. These charges — often combined with fixed fees — can significantly distort the real cost of betting. As a result, the debate is no longer confined to gambling activity itself, but extends to financial transparency, consumer protection and the broader impact of credit-based betting.
This concern is reinforced by data. A study by the Federal Reserve Bank of New York found that following the legalisation of mobile sports betting, betting spend increases roughly tenfold while participation rises by 3.1 percentage points. However, it also identified a deterioration in consumer credit health: average credit scores decline by around 1 point, overall delinquency rises by 0.3 percentage points, and among younger users credit card delinquency increases by approximately 1 percentage point. When isolating active bettors, the implied increase in delinquency approaches 10 percentage points. In practical terms, expanded access to betting correlates with increased financial risk.
That assessment is already shaping regulatory action. In 2026, Maine introduced a ban on the use of credit cards for online sports betting and iGaming, explicitly framed as a consumer protection measure. In Massachusetts, where credit card use was already restricted, enforcement intensified with a USD 450,000 fine imposed on DraftKings over deposit control failures. In Iowa, credit cards are not permitted at all and are even used as an indicator of unlicensed or illegal operators. Across jurisdictions, the message is increasingly consistent: credit is no longer treated as a neutral payment method, but as a structural risk within regulated betting markets.
In Tennessee, the focus is slightly different but leads to the same outcome. The Sports Wagering Council strengthened requirements around multi-factor authentication, identity verification, and deposit controls, particularly in an online-only betting environment. In these fully digital markets, the payment layer becomes central to regulatory design, rather than a secondary operational component.
From a commercial perspective, the impact remains limited. In practice, credit cards no longer represent a primary funding channel for regular bettors. The shift is moving towards debit cards, bank transfers and digital wallets, which offer lower chargeback risk, improved traceability, and reduced reputational exposure. This transition is therefore not only regulatory, but also reflects operational efficiency and cost optimisation.
This evolution can also be read as a sign of market maturity. In January 2026, the US market recorded USD 14.81 billion in handle and USD 1.61 billion in revenue, with a hold of 10.84%. It marked one of the first instances where betting volume slowed while profitability remained stable. In that context, operators are increasingly prioritising margin quality, risk-adjusted revenue, and long-term sustainability over pure volume expansion.
Importantly, this trend is not confined to the United States. In Great Britain, the Gambling Commission continues to enforce a ban on credit card gambling. Ireland has adopted similar restrictions under its new regulatory framework. Australia has also prohibited the use of credit for online betting. Meanwhile, in Brazil, regulation allows Pix, bank transfers and debit cards, but excludes credit, with a strong emphasis on financial traceability and compliance. While the underlying rationale varies — from gambling harm prevention to anti-money laundering controls — the outcome is broadly aligned: credit is being phased out of regulated betting ecosystems.
Rather than a sudden disruption, what is emerging is a structural realignment of payment models in gambling. Operators are adapting before being forced to, regulators are acting on increasingly robust data, and credit — even if marginal in transaction volume — has become central in terms of risk exposure, public perception, and regulatory scrutiny.
This is where the real shift becomes visible. The debate is no longer about whether a payment method should be allowed, but about what constitutes sustainable growth in the betting industry. As the market matures, the focus is shifting towards player quality, responsible spending, and the broader financial impact of gambling activity.
The shift is becoming harder to overlook. Credit cards are not being phased out because they stopped working, but because they no longer fit comfortably within a market that is more regulated, more transparent and far more exposed to scrutiny.
In 2026, US sports betting is still expanding — but the rules shaping that growth are changing. The conversation is no longer just about scale or volume. It is about how that volume is built, how sustainable it is, and how much risk sits behind it.
And that is where the signal becomes unmistakable: the future of the industry will not be defined by how much is wagered, but by how clean, traceable and defensible that money is.
Original article: https://www.yogonet.com/international/news/2026/04/15/118528-us-sportsbooks-move-away-from-credit-cards-amid-rising-regulatory-pressure
