DraftKings to Ban US Credit Card Deposits as it Prepares for Prediction Market Entry

• DraftKings has announced it will stop accepting credit card deposits for its US sportsbook and casino products, effective 25 August 2025.
• While the company cited a desire to “improve the user experience,” the move follows a recent $450,000 fine in Massachusetts for illegally accepting credit card wagers.
• In a separate strategic move, DraftKings has reapplied for membership with the National Futures Association (NFA), a key step towards entering the US prediction markets space.
• The NFA application signals DraftKings’ intent to compete with rivals like FanDuel, which has already announced a joint venture with CME Group for a similar product.
• Together, the moves show DraftKings de-risking its core payment operations while simultaneously preparing an offensive push into a major new product vertical.

DraftKings is set to ban the use of credit cards for deposits on its US sportsbook and online casino platforms from 25 August. The company has framed the move as a pro-consumer decision, but it also comes shortly after it was hit with a significant fine for breaching credit card rules in Massachusetts.

In a statement, a DraftKings spokesperson said the change was intended to help customers “avoid cash advance fees and higher interest rates” and “improve the deposit experience.” Customers will still be able to fund their accounts via debit cards, bank transfers, and payment platforms like PayPal.

The national policy change follows a $450,000 penalty issued by the Massachusetts Gaming Commission (MGC) after it found DraftKings had accepted over $83,000 in illegal credit card deposits in the state. While the company denied the fine influenced its decision, the move aligns its national policy with the rules already in place in a growing number of states that prohibit credit card funding for gambling.

A Strategic Push into Prediction Markets

While shoring up its payment compliance, DraftKings is also making a significant strategic move into a new product vertical. On 24 June, the company filed a new application with the National Futures Association (NFA), seeking approval to operate as both a Swap Firm and an Introducing Broker.

This is a critical step for entering the US prediction markets industry. NFA membership is mandatory for firms acting as intermediaries between customers and federally regulated event contract exchanges like Kalshi. This is DraftKings’ second attempt at joining the NFA, signalling a renewed and serious intent to enter the space after CEO Jason Robins recently told investors the company was “actively exploring” the vertical.

The Race for a New Vertical

DraftKings is not alone in its ambition. The race to launch prediction markets is heating up among major US operators. Arch-rival FanDuel recently announced a high-profile joint venture with derivatives marketplace giant CME Group to create its own event contracts platform. Other competitors, including Underdog, PrizePicks, and Fanatics Betting & Gaming, have also filed applications with the NFA.

The potential prize is significant. Robinhood, which acts as an intermediary for Kalshi, processed $1 billion in trades in Q2 2025 alone, demonstrating a clear and lucrative market for these products.

De-Risking the Present, Investing in the Future

Taken together, DraftKings’ two announcements paint a picture of a maturing company executing a clear, two-pronged strategy. The credit card ban is a defensive move to de-risk its core business and eliminate a source of negative regulatory headlines. At the same time, the NFA application is an offensive move, positioning the company to compete in what many see as the next major growth area for the US digital wagering and trading market.