After FanDuel Cuts Credit Cards, Stored-Value Accounts Take Center Stage

Why It Matters

By eliminating credit‑card funding, FanDuel aims to protect consumers from costly debt while reducing its own processing expenses, setting a new standard for responsible gambling practices. This change accelerates the rise of stored‑value accounts as a core payment method in online betting, reshaping the prepaid industry and influencing future regulatory actions across states.

Summary

FanDuel has stopped accepting credit cards for funding its U.S. sportsbook, casino, and racing accounts, citing regulatory pressure and the high fees and debt risks associated with credit‑card cash advances. The move shifts bettors toward stored‑value accounts—digital prepaid wallets that act like self‑issued gift cards—allowing the company to cut transaction costs and promote responsible gambling while offering incentives such as deposit matches. Industry experts note that this mirrors DraftKings' earlier decision and positions prepaid products as a growth engine in the expanding online gambling market, now legal in 32 states. The shift also reflects broader trends in the prepaid sector, where loyalty and rewards programs are increasingly built around stored‑value accounts.