It has never been a particularly smart move, and soon you probably won’t be able to use your credit card to make online sports bets at your favorite site.
This week, FanDuel announced that it will stop taking credit cards to fund U.S. sports gambling, beginning on March 2. DraftKings had initiated a credit card ban last year, and the two platforms make up 72% of the American sports betting market, according to Casino Reports.
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If you like to bet on whether Steph Curry will make more than five three-pointers tonight, whether the Los Angeles Dodgers will repeat as World Series champions or any number of parlays in whatever sport you choose, using your credit card is an expensive way to indulge.
Charged as Cash Advance
Most issuers consider using your card to fund a deposit with a betting platform to be a cash advance, and your card will likely charge 3% to 5% of the amount. In addition, issuers usually charge a higher annual percentage rate on advances, and that interest normally begins accruing immediately, without the grace period you would get on a typical purchase.
To use the gambler’s term, that’s quite a trifecta, isn’t it?
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Sen. Elizabeth Warren, D-Mass., recently had written to FanDuel and other sports betting companies questioning their allowance of credit cards. But FanDuel said it already had been considering an adjustment.
“This change was made to improve the deposit experience for our customers,” a FanDuel spokesperson said in a statement.
Warren Calls Fees a ‘Scam’
After FanDuel’s announcement, Warren said in a statement that the move “means credit card companies will no longer be allowed to scam Americans with junk fees in the majority of the sports betting market. The rest of the industry should follow suit.”
A handful of states prohibit the use of credit cards for sports betting. Platforms that still accept credit cards include BetMGM and Caesars.
The American Banker and Associated Press contributed to this article.
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Never a Good Bet: FanDuel Bans Credit Cards for Sports Betting originally appeared on usnews.com
