Massachusetts imposes its largest fine on DraftKings for illegally processing sports bets using credit cards
The online sports betting giant DraftKings, headquartered in Boston, has been hit with a record-breaking fine of $450,000 by the Massachusetts Gaming Commission (MGC). The penalty was issued due to DraftKings' illegal acceptance of credit card funds for sports betting, a practice prohibited under Massachusetts state law.
The violations, which occurred between 2023 and 2024, involved at least 1,160 credit card-funded bets, totalling $83,667.92, accepted from 218 customers' credit cards[1][2][3]. The MGC's decision detailed three separate self-reported incidents of non-compliance by DraftKings in May 2023, July 2023, and February 2024.
Initially, DraftKings attributed the violations to internal miscommunication and believed a software fix had resolved the issue. However, that fix failed, leading to further infractions and reports. The Commission emphasized the seriousness of the violation, which continued across nearly a full year despite prior warnings and express instructions to comply with the state's ban on credit card betting. The ruling also criticized DraftKings for internal communication failures that affected their regulatory responsiveness[1][2].
In addition to the fine, the Massachusetts Gaming Commission imposed conditions on DraftKings’ license and ordered the company to return funds related to the credit card deposits. The penalty is noted as the largest fine related to sports betting violations in Massachusetts since legal betting began in 2023[1][5]. DraftKings acknowledged the enforcement action and expressed appreciation for the permanent license to operate in the state[1].
This enforcement underscores Massachusetts' strict stance against credit card funding in sports wagering and highlights regulatory vigilance following the legalization of sports betting in 2023[2][5].
Molly Farrar, a reporter for Boston.com, is associated with the reporting of this event.
[1] MGC Decision on DraftKings Violation (July 25, 2025) [2] Boston.com, DraftKings Fined $450,000 for Illegally Accepting Credit Card Funds (July 26, 2025) [3] Massachusetts Gaming Commission Press Release, MGC Fines DraftKings $450,000 for Illegally Accepting Credit Card Funds (July 26, 2025) [4] DraftKings Statement on MGC Enforcement Action (July 26, 2025) [5] WCVB5 News, MGC Fines DraftKings $450,000 for Illegally Accepting Credit Card Funds (July 26, 2025)
Despite repeated warnings and the state's ban on credit card betting, sports-betting giant DraftKings continued to accept such funds, leading to a record-breaking fine of $450,000 by the Massachusetts Gaming Commission. This incident involved sports-betting activities.
