The Illinois Gaming Board (IGB) announced that it will no longer allow credit card payments for sports betting. The rule change has the potential to increase players at crypto betting sites as users seek convenient betting methods.
The IGB announced the rule change in a press release on Friday. IGB Administrator Marcus D. Fruchter states, “As part of our review, we determined that prohibiting the use of credit cards to fund sports wagering accounts is a justified and impactful advancement in Illinois sports wagering,”
Fruchter cited concerns over credit card payments encouraging problem gambling. He added, “There is a growing body of recent research showing that restrictions on credit usage to fund wagering accounts encourages responsible gambling and mitigates the harms of compulsive gambling.
“Problem gamblers are particularly at risk and studies have shown an often-problematic willingness for compulsive gamblers to use credit cards to place bets.”
The IGB already prohibits credit card payments for casino gambling and video game wagers.
Crypto betting sites to benefit?
Crypto betting sites offer players fast payment options with fewer checks. Decreasing payment options at licensed sports betting sites has the potential to encourage more users to seek alternative options.
Illinois has a huge gambling market and recently replaced New Jersey as the second biggest betting handle in the US. Last year, Illinois bettors placed over $14 billion in wagers. This marked a 20% increase from 2023, with only New Yorkers betting more.
The state, however, does not allow online casino betting, so many players are already turning to alternatives such as crypto casinos. A report published this month showed unregulated online casinos generated over $3 billion in revenue in Illinois last year.
This includes sites such as sweepstakes and social casinos that often accept crypto payments. Sports bettors may also turn to alternative options for more convenient payments. Illinois’ licensed sportsbooks generated $1.2 billion in revenue last year, but unlicensed operators were not far behind at an estimated $880 million. The true figure is likely higher with crypto betting sites and offshore sportsbooks not publicly declaring their revenue.
Other states banning credit cards
Illinois joins Massachusetts and Tennessee in prohibiting credit card payments for sports betting. Both states had bans in place since they legalized gambling on sports. Pennsylvania proposed a similar move last year, but the bill failed to make progress.
The Sports Betting Alliance (SBA) has consistently opposed bills placing restrictions on payment options, amounts, and types of bets. Speaking on a bill in Minnesota that proposed to limit in-game bets, they said it would be “nothing short of a gift to illegal operators.”
A ban on credit card payments could have the same effect and increase the presence of crypto betting sites.
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