The operator failed to block credit card-funded wagers for nearly a year despite explicit state rules.

Key Points

• Between March 2023 and February 2024, DraftKings took in more than $83,000 in bets funded by credit cards.
• Credit card use for sports betting is strictly forbidden by Massachusetts law.
• The MGC required DraftKings to refund the money, boost how it follows rules, and allow a third-party audit.

The Massachusetts Gaming Commission (MGC) fined DraftKings $450,000 because the company let credit card money be used on online sports bets for almost a year. On July 25, 2025, a decision showed DraftKings accepted 1,160 bets that broke the rules, from 242 card deposits linked to 218 people, with a total betting amount of $83,667.92. State laws in Massachusetts do not allow sports betting accounts to use credit card funding.

DraftKings’ Internal Compliance Failures

The MGC said DraftKings did not put in place fixes that worked. DraftKings reported the issue in May 2023, July 2023, and February 2024, but every time the fix failed. The MGC found that poor communication inside the company and not enough checks caused the problem. Credit card bans exist in U.S. sports betting to lower money risk and help responsible gambling. The official decision by the MGC wrote, “DraftKings said it was either a misunderstanding or a set of special events, but what happened clearly broke the law and regulations.”

MGC’s Mandated Corrective Actions

DraftKings began operating its Massachusetts sportsbook on March 10, 2023, with a temporary Category 3 license. Before DraftKings opened, the MGC told all companies directly, credit cards could not be used. The MGC said these orders were not passed on inside DraftKings to the compliance department. DraftKings has to pay back the full $83,667.92 to customers, plan ways to prevent this in the future, and hire an independent auditor to review credit card bets between February and March 2023. The MGC’s action follows other recent steps, including a seal last year to help people know which sportsbooks are legal and which are not.