Virginia Bans Credit Card Sports Betting as State Eyes Legal iGaming

Online casino bills remain in the pipeline, but the Virginia senators have now approved House Bill 515, banning credit cards as a banking option for online gambling. It is expected to take effect soon, with sports betting operators removing credit cards from the supported payment methods. Virginia will join the likes of Massachusetts, New Hampshire, Tennessee, and several other states that have clamped down on credit card gambling. And in addition to them, the sportsbook powerhouses DraftKings and FanDuel have already banned credit cards from their services in all the states where they operate.

However, this is not the norm across most states. In fact, the majority of states with legal iGaming or sports betting do not have bans on credit deposits. The same can be said of the broader, international iGaming and sports betting industries. Betting with borrowed money, or gambling with credit, is still allowed in the vast majority of countries and jurisdictions where gambling is legalized and regulated by official authorities. But with the trend slowly spreading, it may only be a matter of time before it is entirely eliminated.

Virginia Bans Credit Card Gambling

Virginia is one of the fastest growing betting markets in the US, and in 2025 it was in the top 10 states by betting revenue, with over $846 million made that year. The year on year increase was 23.5%, as Virginia finished its 5th year of legal sports betting. But where markets rise so quickly, so too does the concern about the public’s welfare and problem gambling. House Bill 515 was introduced to cut out credit cards from the list of supported payment methods at sportsbook operators.

The bill was introduced by the House of Representatives and passed unanimously by multiple committees at the beginning of March. As such, Virginia will become one of the few legal sports betting states where credit cards are not accepted as a payment method. The idea is to cut down on borrowed spending at these sites, which is perhaps even more important in the US than in any other country.

The Federal Reserve estimated that 82% of US adults had a credit card since 2022, and that the average American has 3+ credit cards in total. Broken down further, over 190 million Americans have at least one credit card, half of the population have at least 2 cards, and 13% have over 5 credit cards. They do have their reasons, with these cards commonly being associated with earning rewards. And, not completely truthfully, some myths holding more credit cards can actually increase your credit utilization ratio (or credit score). Desensitizing this payment method, especially regarding real money gambling, can create immense problems, something that has now been eliminated in the state of Virginia.

Other States with Credit Card Bans

Now 39 states have legal sports betting, with Missouri joining the fray back in December of 2025. And there are more suitors lining up, even expanding to the state of Hawaii, showing how legal US sports betting is becoming far more widespread and mainstream. But of these states, only the following have banned credit card funding methods:

• Massachusetts
• Tennessee
• Iowa
• New Hampshire
• Oregon
• Rhode Island
• Vermont
• Illinois

Illinois was the most recent, outside of Virginia, and in semi-state monopolies such as Rhode Island and New Hampshire, shutting down credit card funding was a lot easier. They don’t have privately run sportsbooks to regulate, but instead have either state-run books, or sportsbooks that are directly partnered with the local lotteries or gambling authorities. But Massachusetts’ ban came right from the outset, when online sportsbooks were launched in 2023. It sent a strong signal to operators and other states in clamping down on the risky deposit method.

Operators Who Limit Credit Funding

The onus is not just on the state authorities either. DraftKings was the first sportsbook to ban credit cards from its service entirely, back in August of 2025. FanDuel, the other big brand in the US, removed credit cards from its sportsbook, horse racing betting book, and online casino on 2 March, 2026. These platforms can take such measures into their own hands and work a lot quicker than the state authorities.

Because they don’t need to introduce bills, gain approval from both houses of Congress, and be signed into law. The process is far more direct, and as two of the most influential books in the US have banned credit cards, it may cause a knock on effect and influence others to do the same.

Another influential voice in the US sports betting industry are the sports leagues and tribal communities – especially in states where operators can only gain licensure by partnering up with these organizations. We saw something similar last year when the MLB requested all its associated sportsbooks to limit baseball micro bets. The result was a swift and unanimous change in the betting products offered by all the partnered US sportsbooks.

Countries Abroad with Similar Legislation

The most well known gambling authority that has banned credit cards is the UKGC. They banned credit cards back in 2020 from all betting shops, online casinos, sports betting platforms, and gambling products. Australia banned credit cards from gambling operators in 2024, and the Swedish gambling authorities limited credit card gambling back in 2025.

The recent gambling reforms in Brazil also saw credit cards banned as a payment method, alongside cryptocurrencies and black market associated payment providers. Though it is still not a widespread phenomenon around the world, and payment methods remain extremely fragmented.

Why Credit Card Gambling is Controversial

Credit cards can have damaging financial consequences, especially for people who take on loans that they cannot pay back, or have to take extra credit to balance. In the hands of a problem gambler, this can create a devastating loop of chasing losses. They may see gambling as a means to win money and pay off their debts, or even to go beyond that and make a handsome fortune on the back of their cleared debts.

It can feel like they have a blank cheque to fund their gambling, reinforcing the impulse to bet and wager their money, hoping that there will be light at the end of the tunnel. These are effectively loans with high interest, and something that is not to be used for activities like gambling, which can incur heavy losses.

Studies do indicate that players using credit cards or borrowing money tend to exhibit problem gambling behaviors. At the same time, some critics would argue that banning credit cards may just open the gateway to bettors turning to alternative borrowing methods, like personal bank loans or payday lending. But these are more difficult to attain, and they are not as readily accessible as a credit card that can be used instantly, given the sportsbook or online casino accepts them.

Virginia’s Move for Legal Online Casinos

So this move by the Virginia lawmakers is a significant change in the landscape for sports betting. And possibly for the future legislation around its pending legal iGaming scene. Because Virginia is seen as one of the forerunners to launch legal online casinos in 2026. The demand for these platforms is strong, and Virginia already has a gambling authority that can take a role in regulating the future iGaming sector.

This push has been in the works since 2025, though previous bills have failed to pass both houses. But now, Virginia is the closest it has been to legalizing online casinos, and the earliest we could see it launch iGaming sites is 2027 or 2028. Other states that have online casino bills in the works include New York, Illinois, and Ohio. Maine just legalized online casinos back in February, and with more states to follow, the US seems to have finally cast its eye to iGaming and not just legal sports betting. The only question that remains is whether the credit card bans, from Virginia and FanDuel, will catch on, and also find their way into other legal betting and iGaming states.