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If you’ve been using your credit card to chase parlays or spin the digital reels on BetMGM, you might want to start looking for your debit card.
BetMGM recently announced that it will phase out credit card funding for its U.S. customers starting March 31.
That means no new credit cards can be added to player accounts, and over time, the ones already there will be removed entirely.
If that sounds like a big deal, it is. For years, credit cards were one of the easiest ways to load money into a sportsbook or casino wallet. Tap your card, make a deposit, and you’re off to the races or the next big game.
But that ease came with a cost. Not just fees and interest from banks, but growing concern from regulators and lawmakers about responsible gaming and financial risk.
Not Just BetMGM Going Solo
DraftKings, Golden Nugget and FanDuel have already stopped accepting credit cards as a deposit method. Some states even outright ban credit card betting altogether.
The primary reason behind this is a push for responsible gaming.
When you bet with a credit card, you are basically gambling with borrowed money, which can lead to a nasty cycle of debt.
On top of that, many credit card companies have started treating these deposits as “cash advances.” This means that even if you win your bet, you are still losing to $10 junk fees and high interest rates that start ticking the second you hit “deposit.”
Lawmakers in Washington have been dealing with this issue longer than BetMGM’s sudden call to action. On February 6th, Senator Elizabeth Warren sent letters to the big betting apps asking why they were letting credit card companies “scam” Americans with these hidden fees.
“In practice, credit card companies charge a one-time fee for each cash advance, typically the greater of $10 or 3-5% of the amount advanced,” Warren’s letter read. “This means that customers who use their credit card to fund their account for a $20 bet would pay a $10 fee on one transaction. Americans may be prepared to lose money on a bet they make—but most are not prepared to lose an extra 50% in credit card junk fees on top of their bet. Many users are unaware of the costs and fees associated with this type of credit card use, which can push them into financial trouble when gambling.”
The Pennsylvania Connection
The timing of this announcement wasn’t exactly a coincidence. BetMGM first spilled the beans about the ban during a recent hearing with the Pennsylvania Gaming Control Board. The operator was already in the hot seat after being fined $100,000 for failing to stop fraud rings that were using stolen identities and compromised payment methods to place over $2 million in wagers.
By trashing credit cards, BetMGM is killing two birds with one stone. They are making it much harder for scammers to use stolen plastic, and they are showing regulators that they are serious about protecting their players from financial trouble.
What This Means for Your MGM Rewards
For the big ballers out there who loved using their MGM Rewards Credit Card to stack up points, the news is a bit of a bummer. Users on social media have already started mourning the loss of the “no-fee” deposit perks that used to help them climb the ladder to Platinum status.
While you won’t be able to link a new credit card or use an existing one after the deadline, BetMGM still offers a ton of other ways to play. You can still use:
