DraftKings Bans Credit Card Use for Betting Deposits

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00:00if you have a credit card and you're let's just say have an addiction to sports betting you

00:05literally could run that card through in the past on all of these different sites and apps hey let

00:10me just put five thousand down i lose it another five thousand i lose it and then you get yourself

00:14into financial trouble it appears as though sam draft kings could be a trendsetter they're telling

00:20you hey if you have the money you can bet but you can't use credit to make your bets on our site

00:25anymore when did this come through yeah that's that's a concern a lot of regulators and lawmakers

00:32have had and something they've looked at is funding funding gambling losses with credit and kind of a

00:37crazy road it can lead you down but draft kings made the decision this monday actually uh to stop

00:43accepting credit cards as a form of depositing so you can't fund your sports betting account with credit

00:50you can't fund your online casino account with credit and this is something that other sports

00:54books have done as well sports books like better and fanatics and they've all kind of positioned it

01:00uh from the same standpoint of it being a consumer protection thing where they want to help customers

01:05avoid high interest debt cash advance fees and generally just make smarter decisions when it

01:11comes to sports betting i think this is as much a customer kind of consumer protection thing as it is

01:16an optics thing a lot of states have on their own moved to ban credit cards you have about seven states

01:22now that don't allow credit card funding uh for a sports book or i casino illinois being the most

01:29recent one which just passed their law and this comes after uh in july draft kings was fined 450 000

01:35by the massachusetts gaming commission for accepting over 83 000 in credit card deposits for sports betting

01:43when despite the state explicitly having a ban on doing that so drafting self-reported that incident

01:50they cited internal miscommunications and have of course paid the fine but i think now we're also

01:54seeing another fallout of that move is maybe it makes more sense to just not have customers able

02:00to do this to begin with so nothing falls through the cracks there's no internal miscommunications in

02:05states that do or don't allow it and you know only a small percentage of uh funding in draft kings's

02:13accounts actually comes from credit cards that came out and said so uh this seems to be something where

02:18they're kind of reacting to something that happened and also trying to get ahead of potentially more

02:22states banning credit cards because you know after illinois did it i would imagine more states would

02:26be apt to do it as well a lot of lawmakers sharing those concerns about chasing gambling losses and of

02:33course the national council on gaming legislatures also came out with legislation that states can copy

02:39and kind of implement these same bans in other states so i think for draft kings it's kind of about

02:44getting ahead of this issue and just kind of cleaning up something that's easy to do you'll

02:48have till the end of the month if you're a draft kings customer to replace uh your stored credit card

02:52information with your you know your main form of depositing but as of right now you can no longer

02:57actually deposit with credit cards so um also coming right before football season so i think the timing

03:02is telling right there

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