Illinois Moves to Ban Credit Cards for Online Sports Betting in 2025

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In a significant development for the U.S. gambling industry, the Illinois Gaming Board (IGB) has advanced a proposal to prohibit the use of credit cards for online sports betting accounts. Announced on April 24, 2025, this regulatory shift represents Illinois’ latest effort to strengthen consumer protections five years after legalizing sports wagering. The move aligns with a growing nationwide trend focusing on responsible gambling measures amid the rapid expansion of online betting platforms.

Key Takeaways:

Illinois Gaming Board has proposed banning credit cards for online sports betting accounts
The proposal now moves to the Joint Committee on Administrative Rules (JCAR) for a 45-day public comment period
Research shows problem gamblers are particularly vulnerable when using credit cards
If approved, Illinois will join Iowa, Massachusetts, Tennessee, and three other states with similar restrictions
The ban complements existing responsible gambling tools like self-exclusion programs and deposit limits
Illinois’ sports betting market has grown to include 10 active online operators generating over $1 billion in annual revenue

Regulatory Details and Rationale

The IGB’s decision to prohibit credit card transactions for online sports betting creates consistency with existing Illinois gambling regulations. The state already bans credit card use for casino gambling and video gaming terminals, making this extension to sports betting a logical next step in regulatory alignment.

IGB Administrator Marcus D. Fruchter emphasized the clear connection between credit card usage and problem gambling in the board’s announcement. “Problem gamblers are particularly at risk, and studies have shown an often-problematic willingness for compulsive gamblers to use credit cards to place bets,” Fruchter stated.

The ban specifically targets the psychological barrier that credit cards remove from gambling transactions. When bettors use debit cards or bank transfers, they face immediate financial consequences. Credit cards, by contrast, allow gamblers to place wagers with borrowed funds, potentially accumulating significant debt before feeling the financial impact.

The proposal has now entered a 45-day public comment period under the supervision of the Joint Committee on Administrative Rules (JCAR). If approved, implementation would likely occur in late 2025, giving operators time to adjust their payment systems and notify customers.

Illinois’ Evolving Sports Betting Framework

Illinois entered the legal sports betting market in March 2020, launching just days before the COVID-19 pandemic led to widespread shutdowns. Despite this challenging start, the state has developed into one of America’s most robust sports betting markets.

By 2025, Illinois hosts 10 active online operators, including industry giants DraftKings, FanDuel, and BetMGM. The market generates over $1 billion in annual revenue, contributing significantly to state tax coffers.

This growth parallels the national expansion of sports betting. Since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, 36 states plus Washington D.C. have legalized sports betting in some form. Illinois ranks among the top five states by betting handle, alongside New York, New Jersey, Nevada, and Pennsylvania.

The initial rollout of Illinois sports betting included controversial in-person registration requirements intended to give retail casinos a head start. However, the COVID-19 pandemic prompted Governor J.B. Pritzker to suspend this requirement through executive orders, eventually leading to permanent remote registration in 2022.

National and Global Trends

Illinois’ move reflects a broader regulatory trend across the United States and internationally. Six states already prohibit credit card use for sports betting accounts:

Iowa implemented its credit card ban in 2020, with regulators issuing over $200,000 in fines to operators for non-compliance. The state’s Racing and Gaming Commission cited concerns about problem gambling and credit card debt in its decision.

Massachusetts incorporated a credit card prohibition from its market launch in 2023. The Massachusetts Gaming Commission took a proactive approach to responsible gambling, implementing some of the nation’s most comprehensive consumer protections.

Tennessee, Connecticut, Ohio, and Colorado have also implemented similar restrictions, while Pennsylvania is currently considering legislation (SB 1159) that would align with Illinois’ approach.

Internationally, the United Kingdom banned credit card gambling in April 2020. Research commissioned by the UK Gambling Commission found that 22% of online gamblers who used credit cards were problem gamblers—a rate four times higher than the general gambling population.

Australia followed suit in 2024, implementing a nationwide credit card gambling ban to create consistency between online and land-based regulations. The Australian Banking Association reported that 81% of Australians supported restricting credit card gambling.

Industry and Consumer Impact

Illinois’ 10 licensed sports betting operators must prepare for significant operational adjustments if the rule passes final approval. While no public opposition has emerged from major operators, the industry faces compliance costs and potential customer attrition.

The impact on consumer behavior remains uncertain. UK data suggests that credit card bans effectively reduce gambling among low-risk users but have more complex effects on high-risk gamblers, who may seek alternative funding methods. According to a 2024 UK Gambling Commission report, the credit card ban successfully prevented vulnerable customers from gambling with money they didn’t have but also led some problem gamblers to seek riskier borrowing alternatives.

For most consumers, the transition should be relatively seamless. Illinois bettors will retain access to debit cards, ACH transfers, digital wallets like PayPal and Venmo, and prepaid cards. The state’s previous implementation of cashless wagering systems for retail casinos provides a blueprint for smooth adoption.

The credit card ban complements Illinois’ existing responsible gambling infrastructure, which includes:

The Illinois Self-Exclusion Program, allowing gamblers to voluntarily ban themselves from betting activities
Mandatory deposit limits that can be adjusted by users but not immediately increased
Required cooling-off periods for account closure requests
Mandatory monthly statements detailing betting activity and net results
Problem gambling helpline information displayed prominently on all betting platforms

Broader Implications

The IGB’s decision coincides with increased scrutiny of unlicensed gambling operators nationwide. In April 2025, the board issued cease-and-desist orders to several companies, including Crypto.com, Robinhood, and Kalshi, for offering unregulated sports event contracts.

Illinois’ approach signals a shift in regulatory philosophy from market expansion toward harm reduction. As the sports betting industry matures, policymakers are responding to emerging data on gambling-related harm with more sophisticated consumer protections.

This trend is evident in states preparing to launch sports betting markets. Missouri, which recently passed legislation authorizing sports wagering, has incorporated many of these protections from the outset rather than adding them later.

Looking ahead, industry experts anticipate further evolution in responsible gambling measures, potentially including:

Affordability checks that flag unusual spending patterns
Stricter verification protocols to prevent underage gambling
Enhanced self-exclusion systems with improved enforcement
Limitations on advertising during live sporting events
Integration of artificial intelligence to identify problematic gambling behaviors
Standardized funding source verification
The rise of crypto betting platforms

The Consumer Financial Protection Bureau (CFPB) has also shown interest in the intersection of credit and gambling. In a 2024 advisory, the agency warned consumers about the risks of funding gambling activities with credit cards, highlighting high interest rates and potential debt traps.

Conclusion

Illinois’ proposed credit card ban reflects the maturing regulatory framework surrounding online sports betting in the United States. By prioritizing consumer protection alongside market growth, the state demonstrates a balanced approach to gambling policy.

The rule change addresses a specific vulnerability in the current system – the use of borrowed funds for gambling activities – while maintaining convenient access for responsible bettors. It aligns Illinois with international best practices and growing consensus among gambling regulators about appropriate payment restrictions.

As the proposal advances through JCAR review, stakeholders will watch closely to gauge its impact on consumer behavior and operator profitability. The outcome may influence regulatory decisions in other states considering similar measures.

This regulatory shift underscores a broader trend: as the novelty of legal sports betting fades, policymakers are increasingly focused on sustainable market development that minimizes social harm. The Illinois credit card ban represents not just a specific policy change but a philosophical approach that balances economic opportunity with social responsibility.