Sportsbooks Eliminate Credit Card Deposits as Regulators Target Compulsive Gambling Risks
TL;DR — Hard Rock Bet Casino has stopped accepting credit cards for deposits in Michigan and New Jersey, following DraftKings and FanDuel. Regulators cite compulsive gambling and debt risks, a shift from post-2018 licensing focus. Chargebacks and fees add operator costs.
SCCG Take — The policy surfaces substitution risk to debit rails without clear harm data. Operators face front-loaded compliance costs where payment scrutiny now binds.
Major online sportsbooks continue to remove credit card options for customer deposits. Hard Rock Bet Casino is the latest operator to make the change, joining DraftKings and FanDuel in states where it holds licenses.
The operator no longer accepts credit cards in Michigan and New Jersey. Debit cards and PayPal remain available. Hard Rock Bet Casino no longer appears on third-party lists of credit card casinos, as first reported by the Times of Casino.
Regulatory Scrutiny on Payment Methods Sharpens After 2018 Ruling
Regulators and lawmakers across several jurisdictions have moved to prohibit credit card funding of wagering accounts over the past two years. Ice Miller notes the cited reasons include compulsive gambling, consumer debt, and financial harm.
Following the Supreme Court’s 2018 Murphy v. NCAA decision, states concentrated on licensing operators and collecting taxes. Payment methods drew little scrutiny at that stage. The focus has since shifted toward how bettors fund accounts, with credit cards allowing wagers using revolving debt rather than owned funds.
Illinois Gaming Board administrator Marcus Fruchter called limiting credit card funding a sensible and worthwhile policy. Fruchter pointed to heightened risk for problem gamblers. Studies show compulsive gamblers are willing to use credit cards to place bets.
Chargeback Costs and Substitution Effects
Credit card transactions carry extra risks for operators. Disputes are harder to win, while chargeback costs and processing fees accumulate. Action Network reporting ties these operational pressures to the accelerating phase-out.
The change retains debit cards and PayPal as alternatives. This leaves unresolved whether the policy reduces gambling harm or simply moves the same spending to a different rail. Operators and regulators will track substitution patterns to measure actual impact on consumer behavior.
Reporting: Times of Casino
Credit card bans look responsible but may just shift spending to debit without measurable harm reduction—substitution risk is real.
We've watched states flip from tax-focused licensing to payment policing in under six years. The policy sounds protective but lacks proof it curbs harm versus routing the same dollars through debit or PayPal. Operators now shoulder front-loaded compliance costs and chargeback exposure while the behavioral evidence remains thin.
- Hard Rock Bet pulled credit cards in Michigan and New Jersey; DraftKings and FanDuel already out
- Regulators cite compulsive gambling and debt risk; chargebacks and processor fees pressure operators
- Debit and PayPal stay live—unclear if harm drops or spending just substitutes to other rails
SCCG angle: SCCG helps operators build payment stacks that anticipate state-by-state regs before they land. We connect clients to compliant processors, alternative funding rails, and responsible gaming tech partners across all 545 relationships—so you're not reacting to every new directive but engineering around it from day one.