The regulated sports betting landscape in the United States continues to evolve, and as of 2026, it is undergoing significant changes that extend beyond just handle and revenue figures. Major operators are increasingly minimizing or entirely eliminating the use of credit cards for funding betting accounts. This trend is influenced by various factors, including regulatory pressures, a heightened awareness of consumer debt risks, and a more cautious approach to managing transactional risks.
As the market expands, the emphasis is gradually shifting towards the quality of revenue, operational sustainability, and effective risk management. According to the American Gaming Association, the US sports betting sector generated a staggering $166.94 billion in wagers in 2025, reflecting an 11% increase from 2024, while revenues soared to $16.96 billion, marking a 22.8% year-on-year growth. These statistics not only indicate ongoing growth but also signal a pivotal shift: the industry is now evaluated not just on its growth metrics but also on how that growth is financed and sustained.
Leading operators like DraftKings, FanDuel, and BetMGM have taken proactive steps to either restrict or completely remove credit card deposits. This trend is evident even in regions where regulations still permit such practices. Companies are opting to take initiative ahead of regulatory mandates to limit their risks and comply with tightening standards. This strategic move indicates a shift in how payment methods are approached within the industry.
Moreover, the political landscape is responding to these changes. In February, Senator Elizabeth Warren, through the Senate Banking Committee, sought information from operators about credit use in betting, focusing particularly on cash advance transactions that incur fees ranging from 3% to 5% of the deposit. These fees can significantly alter the actual cost of betting, broadening the discussion to include financial transparency, consumer protection, and the implications of credit-based wagering.
Data from a study conducted by the Federal Reserve Bank of New York underscores these concerns. Following the legalization of mobile sports betting, spending on betting increased approximately tenfold, with participation rising by 3.1 percentage points. However, this surge in betting activity has also led to a decline in consumer credit health, with average credit scores dropping by around one point and overall delinquency rates increasing by 0.3 percentage points. Among younger users, credit card delinquency has risen by about one percentage point, and for active bettors, delinquency rates could rise by nearly ten percentage points. This suggests that greater access to betting is linked to heightened financial risks.
These findings are already influencing regulatory actions. In 2026, Maine implemented a ban on credit card usage for online sports betting and iGaming, positioning it as a consumer protection initiative. Massachusetts, which had already restricted credit card use, intensified enforcement, resulting in a $450,000 fine for DraftKings due to deposit control violations. In Iowa, credit cards are completely prohibited and are even flagged as indicators of unlicensed or illegal operators. Across various jurisdictions, there is a clear message: credit is increasingly viewed not as a neutral payment option but as a potential risk factor in regulated betting markets.
In Tennessee, the focus shifts slightly but leads to similar outcomes. The Sports Wagering Council has tightened requirements surrounding multi-factor authentication, identity verification, and deposit controls, especially in online-only betting environments. In these digital markets, payment systems are becoming central to regulatory frameworks rather than being secondary operational elements.
From a commercial standpoint, the impact of these changes has been relatively limited. In practice, credit cards are no longer the primary funding source for regular bettors.