FanDuel is cutting off credit card deposits for its sportsbook, casino and racing offerings nationwide, which is a significant change in how Americans can fund their gambling accounts. The company revealed that it had considered various payment options for several months before making the decision.
The problem with credit cards and gambling is that they’ve been a problematic mix for quite some time. When people are given the ability to gamble with money they don’t have, the situation can get out of hand quickly. Essentially, those individuals could end up using money meant for rent, groceries or other bills to place bets. So, the money you’re gambling with just isn’t in your pocket yet, really.
The fees are another story. Just imagine, you want to make a $20 bet, but then the credit card fees may cost you an additional $10. As a result, you’ve essentially paid a 50% markup for just placing your bet. Typically, transaction fees range between 3% and 5%, which Senator Elizabeth Warren referred to as “hidden costs” that negatively impact gamblers who are likely already tightening their budgets.
Warren has been pretty vocal about this matter and keeps urging Congress to put a ban on credit card gambling for the whole nation. She’s not the only one worried about it, a couple of states, Illinois among them, have already taken steps to encourage or require such restrictions.
Actually, the U.S. is behind in this game. The UK, Australia, and almost all other nations that have mature gambling markets have already prohibited the use of credit cards for betting. New Zealand just recently added itself to that list by making the announcement last month.
Although on the federal level there is no law compelling operators to abandon credit cards, the companies are sensing the situation and are voluntarily making changes. This is a foresighted step that basically says the industry is playing a game of player protection or at least figuring out a way not to get the next regulations by getting up ahead of the curve.
Editor-in-chief and creator Cole Smith of casinocurrencies.com, has extensive experience with casino payment systems, The site was created to provide an honest and trustworthy resource for online gambling players.