Betting using Credit Cards: Allowed in the US? Should it be?

Sports betting and online gambling have grown in popularity in the U.S. Online gambling peaked during the pandemic. In addition, state legislation has made it possible for more Americans to gamble at any given time.

According to the latest stats, revenue from online gambling will hit $24.98 billion in 2024. Online sports betting marketing will reach a projected volume of $14.30 billion in the same year.

Online gambling has many attractive features, including credit card usage for funding accounts. However, most major credit card companies won't accept gambling purchases. Credit card issuers that do allow online gambling will treat it as a cash advance.

Gambling has been around forever. But it recently trickled into mainstream entertainment. The UK legalized gambling and sports betting long before the U.S. It also cracked down on some aspects of the industry in recent years.

The UK used to permit credit card purchases for gambling. In April 2020, the Gambling Commission announced a ban on gambling operators allowing players to use credit cards to gamble.

The UK credit card ban isn't what it seems. A 100-plus page report revealed many individuals who struggle with problem gambling used a credit card in the last 12 months. This occurred after the ban went into effect. The UK didn't achieve its goal of preventing gambling for at-risk and problem gamblers.

This revelation just comes months after the Jacksonville Jaguars were victims of a $22.2 million embezzlement by one of their financial managers. Amit Patel faced 6 1/2 years in prison after he pleaded guilty to fraud. He admitted to using the team's virtual credit card to fund his gambling and sports betting addiction.

In March 2023, Patel learned about his gambling disorder just a month after his firing. Gambling disorder occurs when an individual is unable to control his or her urge to gamble despite its negative outcomes. It can cause financial problems, job loss, and co-occurring mental health conditions.

Which states in the U.S. allow credit cards for sports betting? Which states ban them?

Credit cards became the most common form of payment in the U.S. American Express, Mastercard, and Visa are three major credit card issuers. It's also appealing for bettors of sportsbooks and sports betting. This allows bettors to fund their online accounts quickly.

States Accepting Credit Cards for Sports Betting

As of 2024, the use of credit card payments for sports betting varies by state. Most states have legalized sports betting over the years. However, each state has its own restrictions and rules. Here are states where credit card payments are accepted for sports betting:

Indiana
Nevada
New Jersey
Pennsylvania

States Banning Credit Cards for Sports Betting

In 2024, several states banned credit cards for sports betting. These restrictions vary depending on the policies of sportsbooks and local regulations. The states that ban credit card payments for sports betting include:

Connecticut
Delaware
New York

Even though credit cards are banned or restricted, other forms of payment like bank transfers, debit cards, and e-wallets are still accepted. States are always changing their regulations. It's best to check the latest laws for your specific state.

Should credit cards be allowed as betting funds? Lessons from the UK ban

The UK credit card ban raises some good points. It can be risky to use credit cards for sports betting. Funding your online gambling habit with a credit or debit card can negatively impact your credit. It can also lead to impulsive decision-making and problem gambling. If you're not careful, it could develop into a gambling addiction later in life.

Can credit cards be used for other types of gambling?

Gambling became an American pastime over the years. A 2022 survey from the Pew Research Center found that 19% of Americans have bet on sports in some capacity. Most people gamble from home since it’s easily accessible online.

However, most credit cards aren't an accepted form of payment. That hasn't stopped gambling sites from accepting credit cards. Some major credit card issuers pulled the plug on online gambling. According to gambling.com, a long list of states ban online casinos and poker.

Some states allow other types of gambling, such as horse races and sports betting. Credit card issuers will still categorize them as online gambling. The credit card company could treat it as a cash advance or reject the transaction.

Credit card issuers aren't as strict with lottery tickets. Only 23 states allow consumers to purchase lottery tickets with a credit card. But it doesn’t mean consumers can purchase lottery tickets with a credit card at the gas station. It still depends on the state's rules and regulations regarding lottery products.

Warning signs of Gambling Addiction

Amit Patel is just one of 2.5 million adults in the U.S. who struggle with a gambling disorder. The National Council on Problem Gambling reports that five to eight million adults possess mild to moderate forms of disordered gambling. Gambling can affect people of all genders, ages, and socioeconomic groups.

Here are the most common signs of gambling disorder:

Defensive about gambling habits
Dysfunctional daily lives as a result of gambling
Experience withdrawal symptoms when not gambling
Gamble despite the negative outcomes
Guilt or shame after gambling
Hide or lie about gambling habits
Increased obsession or preoccupation with gambling
Extreme mood swings
Stealing or legal trouble to finance gambling habits

Gambling addiction treatment from the comfort of home

Gambling addiction is treated similarly to sex addiction and internet addiction. Overcoming gambling addiction is possible when the individual works with a mental health professional. Treatment for gambling addiction includes a combination of prescription medication, counseling, and residential treatment.

Individuals can also receive treatment at home if they want to. Birches Health offers virtual treatment, which works with an individual's schedule. First, that individual must admit they struggle with gambling addiction. From there, they can take a free and confidential self-assessment.

Virtual treatment is based on cognitive behavioral therapy, also known as CBT. It's the most used form of treatment for gambling addiction. CBT focuses on recognizing negative beliefs, triggers, and patterns and adopting healthier, positive ones. Medications and support groups can also help those struggling with co-occurring conditions, such as anxiety, bipolar disorder, or depression.

Virtual therapy is an ideal treatment for those with behavioral addictions. It provides the same benefits as traditional therapy without having to leave home. This is suitable for those who don't want to interrupt their jobs or personal lives.

There are many ways to get started with Birches Health:

You can also contact us directly by calling 833-483-3838 or emailing hello@bircheshealth.com.