Sports betting has grown into a massive industry across the United States, but the way it’s funded raises pressing questions. As millions wager on everything from Super Bowl outcomes to obscure cricket matches, many are doing so with borrowed money—and that’s a problem. Using credit cards to place bets adds layers of risk, cost, and potential harm that lawmakers and industry leaders can no longer ignore.
Sports Betting’s Fragile Foundations
The sports betting boom, fueled by legalisation in 38 states, was supposed to create a safer, more regulated gambling environment. Yet, cracks in this foundation are becoming increasingly clear. While betting companies struggle with high taxes and tighter margins, bettors themselves are feeling the squeeze. Promotions once heralded as “risk-free” have dried up, and the industry’s golden glow has dimmed.
Enter credit cards. Nearly a quarter of U.S. sports bettors prefer to fund their accounts this way. It’s easy and familiar, but it’s also fraught with pitfalls. Using credit to gamble essentially allows bettors to risk money they don’t have—often at a higher cost than they realise.
Why Credit Cards Don’t Belong in the Game
Let’s start with the obvious: funding gambling with credit cards increases the likelihood of financial trouble. When bettors use credit, they’re borrowing against their future, often at steep interest rates or with hidden fees. The Consumer Financial Protection Bureau (CFPB) recently highlighted one glaring issue: sports betting deposits are often treated as cash advances.
Consider this scenario:
- A $20 deposit might incur a $10 cash advance fee.
- Even a winning bet wouldn’t recoup the fee.
Bettors might not realise this until their statements arrive, leading to frustration and financial strain. Complaints collected by the CFPB highlight the confusion and anger surrounding these charges. Worse, these fees disproportionately affect casual bettors, undermining the claim that legal betting is about safety and fairness.
Lessons From Abroad and at Home
The United Kingdom has banned the use of credit cards for gambling since 2020, recognising the risks they pose. In the U.S., a few states have taken similar action. But in most jurisdictions, the practice continues unchecked, creating an uneven patchwork of regulation.
So why hasn’t the U.S. followed the UK’s lead? The answer lies in the interplay between the sports betting and credit industries. While gambling companies promote ease of access, credit card firms benefit from the fees and interest charges these transactions generate. It’s a lucrative cycle—but one that ultimately harms consumers.
The Human Cost of Easy Betting
Gambling should be an enjoyable pastime, not a source of financial despair. Yet, the current system makes it too easy for individuals to spiral into debt. Credit cards facilitate an almost mindless transfer of funds, with little consideration of the consequences.
Take a closer look:
- Bettors can move money from a credit card to a sportsbook account with just a few clicks.
- The process bypasses the caution and reflection that typically accompanies cash or bank transfers.
This ease can turn a casual wager into a dangerous habit, particularly for those already struggling with addiction or financial insecurity. The speed and simplicity of betting apps exacerbate the issue, making it all too easy to bet beyond one’s means.
A Clear Path Forward
The solution is straightforward: eliminate credit cards from sports betting entirely. Policymakers should step in where credit card companies and sportsbooks have failed. Banning credit card deposits won’t solve every problem in the gambling industry, but it would address one of its most glaring flaws.
This change would:
- Encourage bettors to fund their accounts with money they already have, fostering healthier habits.
- Protect vulnerable individuals from incurring debt they can’t repay.
- Align the industry with its stated commitment to consumer safety.
It’s a move that benefits everyone—except those profiting from the status quo.
