The US regulated sports betting market continues to expand in 2026. However, beneath the surface, operators are making a structural shift in how players fund their accounts. Leading sportsbooks are increasingly reducing or fully removing credit card deposits. This reflects growing regulatory pressure, tighter consumer protection expectations, and a broader focus on transactional risk management.
While the industry still shows strong growth in handle and revenue, the direction of travel is clear. Operators are prioritising revenue quality, financial sustainability, and compliance over pure volume expansion.
Market Growth Continues, but Priorities Are Changing
According to the American Gaming Association, US sports betting generated $166.94 billion in wagers in 2025. This represents 11% growth year-on-year. Revenue reached $16.96 billion, up 22.8%. Despite this continued expansion, the industry is increasingly being evaluated on the stability and quality of its revenue streams, rather than growth alone.
This shift has placed greater attention on how bets are funded. In addition, there are financial risks tied to different payment methods.
Major Operators Move to Restrict Credit Card Deposits
Operators including DraftKings, FanDuel, and BetMGM have each taken steps to limit or eliminate credit card funding options for betting accounts. While policies vary by jurisdiction, the direction is consistent. They are reducing exposure to credit-based betting and aligning with emerging regulatory expectations.
Rather than waiting for stricter mandates, operators are proactively adjusting payment frameworks. They aim to reduce chargeback risk, improve compliance alignment, and minimise reputational and regulatory exposure.
Political and Regulatory Pressure Intensifies
The issue has also gained traction at the policy level. In February, Senator Elizabeth Warren, via the Senate Banking Committee, requested information from operators regarding the use of credit cards in sports betting transactions. In particular, she focused on those processed as cash advances with fees ranging between 3% and 5%.
These concerns have broadened the debate beyond gambling activity itself. Now, focus is shifting toward consumer debt exposure, financial transparency, and the cost structure of credit-funded betting.
Data Highlights Financial Risk Concerns
Research from the Federal Reserve Bank of New York further reinforces regulatory concerns. Following the legalisation of mobile sports betting, betting expenditure increased significantly, alongside measurable impacts on consumer credit health.
Findings show declines in average credit scores, increases in delinquency rates, and a sharper rise in financial stress among younger users. Among active bettors, delinquency risk rises notably. This highlights a correlation between expanded credit access and increased financial vulnerability.
State-Level Regulations Accelerate Restrictions
Regulatory responses across US states are reinforcing this trend. Maine has introduced a full ban on credit card use for online sports betting and iGaming. Massachusetts has tightened enforcement, including penalties for deposit control failures. Iowa already prohibits credit card use entirely and uses it as a compliance signal for identifying unlicensed operators.
In Tennessee, regulators have focused on strengthening identity verification and deposit control requirements. This further embeds payment oversight into broader compliance frameworks.
Operators Shift Toward Safer Payment Methods
From a commercial standpoint, the impact has been limited, as credit cards no longer represent a dominant funding method for most bettors. Operators are increasingly shifting toward debit cards, bank transfers, and digital wallets. These offer lower chargeback risk, improved transaction traceability, and stronger compliance alignment.
This transition reflects both regulatory pressure and operational efficiency gains, particularly in managing fraud and financial risk exposure.
Global Trend Toward Credit Restrictions in Betting
The US is not alone in this shift. For example, Great Britain maintains a long-standing credit card gambling ban, while Ireland and Australia have implemented similar restrictions under updated regulatory frameworks. In Brazil, credit-based betting is excluded in favour of traceable payment methods such as Pix and bank transfers.
Despite differences in regulatory rationale, the global direction is consistent: credit is being systematically removed from regulated betting ecosystems.
Market Maturity Drives Structural Payment Changes
As the US market matures, operators are increasingly focused on margin quality, risk-adjusted returns, and long-term sustainability. In early 2026, the market showed signs of stabilising growth patterns, with revenue holding steady even as handle growth moderated.
This reflects a broader industry transition where profitability and sustainability are becoming more important than aggressive expansion.
Conclusion: A Shift Toward Controlled, Traceable Growth
The gradual removal of credit cards from sports betting is not a sudden disruption. Instead, it is a structural adjustment shaped by regulation, risk management, and financial accountability.
As US sports betting continues to grow, the underlying framework is evolving. The industry is moving toward payment systems that are more traceable, more controlled, and more aligned with regulatory expectations.
Ultimately, the focus is shifting from how much is wagered to how responsibly and transparently that activity is financed. This is a change that is redefining what sustainable growth looks like in the modern betting landscape.
