DraftKings has announced that it will now allow crypto-to-cash deposits in four states across the United States. The betting platform said in a statement that it will be rolling out a new feature that will allow all users in the United States to use digital assets converted to cash to fund their online betting accounts.
This statement was corroborated this week at a Massachusetts Gaming Commission (GMC) meeting. The meeting was chaired by Carrie Torrisi, head of sports betting, who said DraftKings was fully cleared to introduce new deposit sources in four states in the coming weeks. Chair Jordan Maynard noted that the states involved include Illinois, Kentucky, New Hampshire and Vermont.
DraftKings enables new deposit feature in 4 states
Torrisi said Massachusetts, where DraftKings operates, would also have been part of the new deposit rollout if MGC hadn’t changed its rules prohibiting the cashing out of cryptocurrencies as an acceptable source of funds for sports betting accounts. The new rules went into effect on December 19, 2025, following review and staff recommendations. This restriction is similar to credit card restrictions, and prohibits converting virtual currency to cash and depositing it into accounts in other jurisdictions.
Digital assets are not widely used in state-regulated sports betting licenses in the United States, although some states allow them. For example, Wyoming allowed cryptocurrencies as a wagering method in 2021, becoming an early adopter and one of the first countries to approve the funding source. Additionally, gaming regulators in Colorado and Virginia began allowing the conversion of deposits into cryptocurrencies in 2022. DraftKings has not yet released any additional statements in this regard.
Hannah Sims, director of sports betting for the Kentucky Horse Racing & Gaming Corporation, said of the new development that Kentucky’s sports betting regulations take into account the use of digital assets. He added that sports betting can be made using a variety of payment forms approved by the Commission, including cash equivalents converted to cash for assets such as digital currencies, cryptocurrencies and virtual currencies.
He added that KHRG staff worked with DraftKings to evaluate the proposal. This included product testing, reviewing the vendors involved, and ensuring that the appropriate tests had been taken and passed. Following that process, KHRG approved the method for use as meeting Kentucky’s regulatory requirements. Hannah Chauvin, director of communications and legal affairs for the Vermont Department of Liquor and Lottery, echoed similar sentiments.
Moves by states to outlaw credit cards as a source of funds
In contrast, Massachusetts regulators approved a request to grant DraftKings a temporary exemption to test the implementation and functionality of the technology, including how to segregate funds in crypto assets, but commissioners still expressed concerns at a December meeting. “Fundamentally, we believe that cryptocurrencies are not ready for prime time,” said Caitlin Monahan, director of MGC’s Investigation and Enforcement Bureau (IEB).
Mr. Monaghan said that at this time the committee does not believe that is a source of funding that will soon be incorporated. He also cited the lack of regulation around the use of digital assets and concerns about money laundering. She noted that no licensed sportsbook in the state accepts cryptocurrency-to-cash conversion as a funding method, but DraftKings director Pete Harrington said the company is only considering cryptocurrency conversions and is not directly investigating the assets.
DraftKings has opted to open deposits to crypto exchanges a few months after banning credit cards for sports betting deposits. Several states have banned the use of credit cards for online sports betting, citing concerns about gambling problems and financial harm. These include Iowa, New Hampshire, Rhode Island, Vermont, and Tennessee. The Illinois Gaming Commission also recently approved regulations that prohibit the use of credit cards to finance sports betting.
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