Using a credit card is a safe and convenient way to make nearly any purchase you can think of. Depending on the card you have, it may also give you the ability to earn cash back or rewards on each transaction. But if you’re wondering whether you can use your credit card for online sports betting, the answer may not be a resounding yes.
Many of the most popular sportsbooks in the United States accept multiple payment methods to make deposits to your account, including credit cards. However, whether you’ll be able to use your card for online sports gambling will depend on multiple factors, including the sportsbook where you’re betting, the state where you live, your credit card network and the bank that issued your card.
In certain states, like Massachusetts or Rhode Island, you can’t fund sports bets using your credit card. However, the list of states that don’t allow the use of credit cards for online sports betting is in flux as state legislations around gambling are constantly changing. For example, the Pennsylvania Senate introduced a bill earlier this year that would ban the use of credit cards on fantasy league bets and online lottery.
[Read: Best Credit Cards.]
In Which States Is Sports Betting Legal?
Sports betting is legal in 38 states and the District of Columbia as of October 2024, according to the American Gaming Association. Meanwhile, mobile sports betting is legal in 30 states and the District of Columbia.
How the Type of Card Affects Online Sports Betting
Major payment networks like Visa and Mastercard are usually accepted at popular sportsbooks, but yet again, it will all depend on the specific network, betting site and location. For example, sports betting and fantasy app DraftKings accepts Visa, Mastercard and Discover credit cards to make deposits to sportsbook accounts regardless of location, while American Express is only accepted for sportsbook deposits in New Jersey.
Beyond the payment network, some banks may flag any credit card transaction made on a betting site out of precaution and decline it. In this case, you would have to use a different form of payment.
The Costs of Using Credit Cards for Online Sports Gambling
But even if all the stars align in your favor and you can indeed use your credit card for online sports betting, the question is whether you should. Here are four reasons why using your card for online sports gambling might not be a savvy move.
Sports Betting Transactions Are Considered Cash Advances
Many banks, like Chase and Citi, treat purchases made on sports betting and gambling sites as cash-like transactions, also known as cash advances. Cash advances don’t offer grace periods, which means that they start accruing interest right away.
In addition, the annual percentage rate for cash advances is usually higher than the regular APR on the card. For example, if your card has a regular APR of 20.24% to 29.24%, the cash advance may be 29.99%.
You May Have to Pay Additional Fees
In addition to the higher interest you’ll have to pay on your sports betting transaction, you’ll be charged a cash advance fee. The fee is usually $10 or 5% of the amount of each transaction, whichever is greater.
Your Credit Limit for Sports Betting May Be Much Lower Than You Think
Credit card issuers usually set separate credit limits only for cash advances, and these can be significantly lower than your total credit limit. This might significantly restrict the amount of money you can deposit into your sportsbook account.
For example, the total credit limit on one of my Chase credit cards is $18,100 — but the cash advance limit is only $915, or around 5% of my total credit limit.
You Won’t Earn Any Rewards on Cash Advances
If you think you’ll at least score some wins on your bet in the form of cash back or points, think again. Credit cards allow you to earn points, miles or cash back on eligible purchases but not on cash advances.
This means that any transactions made on a sportsbook that your card treats as cash advances won’t earn any rewards or cash back.
Is Using Your Credit Card for Online Sports Betting a Good Idea?
Beyond the additional costs you may incur by using your card for online sports betting, you may also want to consider the potential consequences on your overall finances. Recent studies conducted by UCLA and USC found a decline in credit scores and an increase in debt collections, delinquency rates and bankruptcy rates in those states where sports gambling is legal.
Using a credit card for sports betting online “may work for some people, and it may not work for others,” says Bruce McClary, senior vice president of media relations at the National Foundation for Credit Counseling. “If you’re not in a position where you can afford to take financial losses while engaged in recreational gambling, you probably should think about other activities.”
Like other payment forms, credit cards are now mostly digital, which “removes the immediacy of winning and losing this money,” says Keith Whyte, executive director at the National Council on Problem Gambling. The lack of friction in these transactions might prevent you from realizing how much money you’re actually spending while sports betting online.
“There can be a disassociation from the amount of money you’re wagering or the amount of money that you’ve lost,” Whyte says. While using a credit card may be safe and convenient, that convenience might also backfire.
“You’re gambling with money that you don’t have,” Whyte says.
“If you have the credit card, you can continue as long as there’s an available credit limit,” McClarey says. “Sometimes it’s easy for people in those situations to think of their line of credit as their money and their available cash. It’s really someone else’s money you’re borrowing — and you’re borrowing at a cost.”
Using a credit card for sports betting can be a risky proposition, but it mostly depends on “whether or not the person has a gambling problem,” Whyte says. “No form of payment is safe for someone who has a gambling problem.
“Stop using that credit card and shift it to another form of payment where there’s less potential for harm,” Whyte says.
How to Use Credit Cards for Online Sports Betting Responsibly
If you’re planning to use your credit card for sports betting, the main piece of advice both McClary and Whyte have for you is setting a spending limit that won’t affect your budget. The key is to be able to pay off the balance on your credit card as quickly as possible.
“If you continue rolling that balance over from month to month, it’s just going to accrue more interest,” McClary says. This can make the balance more difficult to pay off, costing you more in the long run.
When it comes to setting a limit to the amount of money you can spend on online sports gambling, Whyte suggests 1% of your income. That way, any losses you may experience won’t affect your finances significantly.
If you find it difficult to control your spending on online sports betting, experts suggest several strategies.
— Take advantage of the tools at your disposal. Some credit cards allow you to set daily limits on specific activities, where you’ll be essentially shutting off card activity after you hit a certain amount on any given day. “If you don’t have the willpower to be able to stop using the card, you can bring technology in to do the job for you,” McClary says.
— Have an accountability partner. This is somebody who can hold you accountable to staying on track with your budget, making sure “you’re not putting yourself in a situation that will make your finances worse,” McClary says. If no one in your inner circle is available, peer-based support groups like Debtors Anonymous can help.
— Seek out help. If your credit card debt is getting out of control, McClary suggests reaching out to a nonprofit credit counseling agency. “You can find them all across the country,” he says. If you or somebody you know is struggling with gambling, Whyte suggests calling 1-800-GAMBLER, which is the National Problem Gambling Helpline. The line provides information and resources.
“Gambling should always be recreational. It’s never occupational,” Whyte says. “If you’re gambling for fun and entertainment, that’s probably good and you should set your budget accordingly. But you should never gamble to make the rent or to make money.”
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Can You Use Your Credit Card to Bet on Sports? originally appeared on usnews.com
