DraftKings is preparing to roll out crypto-to-cash deposits for sports betting customers in four US states, as regulators across the country tighten restrictions on credit card use in online gambling.
The new feature will allow users to convert digital assets into cash before depositing funds into their DraftKings betting accounts. The company confirmed the rollout in a statement, with regulators indicating the launch is expected in the coming weeks.
The move was discussed during a recent meeting of the Massachusetts Gaming Commission (MGC), chaired by Carrie Torrisi, Chief of the Division of Sports Wagering. Commissioners confirmed that DraftKings has been approved to introduce the payment option in Illinois, Kentucky, New Hampshire, and Vermont.
Massachusetts not included
Massachusetts, however, will not be included. Regulators in the state recently changed their rules to ban crypto converted to cash as a permissible funding source for sports betting accounts. The regulation, which came into effect on 19 December 2025, mirrors the state’s existing prohibition on the use of credit cards for gambling deposits.
Torrisi noted that DraftKings would have been eligible to roll out the feature in Massachusetts had the rule not been amended. The restriction reflects broader concerns among regulators about consumer protection and financial harm.
Crypto funding remains relatively rare within state-regulated sports betting in the US. Wyoming was an early adopter, allowing digital assets as a wagering funding method in 2021. Colorado and Virginia followed in 2022 by permitting crypto-to-cash conversions for betting deposits.
As payment innovation continues to reshape digital wagering, similar trends are also emerging in mobile-first gambling platforms, particularly among best mobile online casinos that prioritise alternative funding methods and user accessibility.
No plans for further extension
DraftKings has not provided further details on whether it plans to expand the feature nationally or introduce direct crypto payments in the future. In Kentucky, regulators said the approval aligned with existing rules. Hannah Simms, Director of Sports Wagering at the Kentucky Horse Racing & Gaming Corporation, confirmed that the state’s regulations already account for digital assets when converted into cash equivalents.
She said the regulator worked closely with DraftKings to evaluate the proposal, including product testing, vendor reviews and compliance checks. The method was approved after meeting all regulatory requirements. Vermont regulators echoed Kentucky’s position, confirming their support for the funding option.
By contrast, Massachusetts regulators have expressed continued scepticism. While the MGC granted DraftKings a temporary waiver to test the technology, officials remain concerned about the maturity of crypto as a funding source. Caitlin Monahan, Director of the commission’s Investigations and Enforcement Bureau, said regulators do not believe crypto is “ready for primetime”, citing weak oversight and money laundering risks.
Credit card rules tighten across US
The rollout comes amid a wider regulatory shift away from credit cards in online gambling. Several states, including Massachusetts, Iowa, Tennessee, and Illinois, have banned credit card deposits for sports betting and several forms of online casinos. New Hampshire, Oregon, and Vermont have introduced similar restrictions.
Regulators argue that credit cards encourage problem gambling by allowing consumers to bet with borrowed money. Credit card deposits may also be treated as cash advances, exposing users to high interest rates and additional fees.
Some policymakers are now considering broader bans that would extend to online casinos and other forms of gambling, as states continue to balance innovation in payments with responsible gambling safeguards. As credit card bans spread, operators like DraftKings appear increasingly focused on alternative funding methods that comply with evolving regulatory frameworks.
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