The rapid expansion of legalized sports betting across the United States has triggered a debate among regulators: should consumers be allowed to sports wager using borrowed money?

Increasingly, state gaming regulators are concluding the answer is no.

The Current Regulatory Landscape

Over the past two years, regulators and lawmakers in multiple jurisdictions have moved to prohibit the use of credit cards to fund sports wagering accounts, citing concerns over compulsive gambling, consumer debt, and financial harm.

When online sports betting first expanded after the Supreme Court’s 2018 decision in Murphy v. NCAA, many states focused primarily on licensing operators and generating tax revenue. Payment methods received comparatively little scrutiny.

That narrative has since changed.

Regulators now are taking a closer look because it allows bettors to finance gambling activity with revolving debt. Consumer advocates and public-health experts have raised concerns that the practice can accelerate addictive behavior by separating wagering decisions from immediate cash consequences.

In their April 25, 2026, announcement, the Illinois Gaming Board recently adopted proposed rules banning the use of credit cards to fund sports wagering accounts, describing the measure as an “impactful advancement” in responsible gambling policy.

The Ohio Casino Control Commission announced the proposed rule change to Ohio Administrative Code 3775-16-03 to remove credit cards as a permissible funding source for a deposit enabled account. The Problem Gambling Network of Ohio recently weighed in to support of the change by stating,

“These policy shifts reinforce a core low-risk gambling practice: only gambling with money you already have available. Restricting the use of credit cards helps reduce the risk of individuals wagering with borrowed funds, which can contribute to financial instability and gambling-related harm,” said Derek Longmeier, Executive Director of the Problem Gambling Network of Ohio.

“As sports gambling continues to expand in Ohio, it is critical that safeguards evolve alongside accessibility. By requiring players to use existing funds rather than borrowed money, this policy change promotes safer play behaviors and encourages individuals to better understand and manage their spending.”

Several states including Massachusetts, Tennessee, Connecticut, and Vermont have already prohibit credit card deposits for sports wagering under state law or gaming regulations.

Operators Are Moving Faster Than Legislatures

Notably, major sportsbook operators have begun abandoning credit card deposits even in states where they remain legal.

In August 2025, Draft Kings announced that it would discontinue credit card deposits nationwide, citing concerns about cash advance fees, high interest rates, and customer protection.

FanDuel announced in March 2026 its own nationwide prohibition, ending the use of credit cards across sportsbook, casino, and racing products.

Caesars Digital stopped using credit cards to fund its online gambling platforms on April 14, 2026. Bet365 stopped using credit cards across the United States on April 13, 2026. Likewise, BetMGM discontinued credit card payments.

The Regulatory Landscape Ahead

The movement away from credit-funded gambling is likely to continue.

Additional legislation and regulatory proposals are pending in several states, including Colorado, New York, New Jersey, Virginia, and Maryland.

Whether through direct regulation, operator self-policing, or legislative reform, the trend is unmistakable: state regulators are taking a closer look at sports wagering financed through unsecured consumer debt and more changes are likely coming.

If you have any questions, please contact Samuel Porter or a member of Ice Miller's Gaming, Sports Betting & Alcohol Law Practice Group.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.