Credit Card Deposits to Sportsbooks Not Allowed in Massachusetts: DraftKings Customers Were Able to Use Them?
Users reportedly circumvented the credit card deposit ban at sportsbooks in Massachusetts, according to a recent report.
There are currently six other US states that do not permit credit card deposits to sportsbooks. These include:
- Iowa.
- Massachusetts.
- New Hampshire.
- Oregon.
- Rhode Island.
- Tennessee.
- Vermont.
The only other option for using a Visa, Mastercard, Amex or Discovery Card in these states are via an internationally licensed sportsbook. Local bookies are also available but typically extend credit (no deposits necessary).
DraftKings is one of the Massachusetts regulated sites where customers have found away around the credit card ban.
A hearing last week revealed the missteps that allowed for such a circumvention.
From Legal Sports Report:
DraftKings first identified the issue in May 2023, when the company realized that while Massachusetts users were prevented from funding their accounts with credit cards directly, many were circumventing the ban.
Users deposited funds via credit cards in states where the practice is legal and then crossed into Massachusetts to place bets, executives with DraftKings testified.
From March 2023 to February 2024, 218 users placed 1,160 bets totaling over $83,000 using this loophole. Although DraftKings believed it had fixed the issue in July 2023, further violations occurred, culminating in pool entries funded by credit cards.
Employees of DraftKings apparently believed credit cards could be used by Massachusetts customers while traveling out of state. The Massachusetts Gaming Commission says this is not the case.
Investigations and Enforcement Bureau counsel Zachary Mercer pointed out that despite ongoing communication with the MGC, the company did not address the interpretation that led to the violations.
DraftKings insists its has corrected these issues.
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