DraftKings has revealed plans to implement a new feature enabling users in four U.S. states to convert digital assets into cash for online betting accounts. This development was confirmed during a meeting of the Massachusetts Gaming Commission (MGC), where it was announced that the new deposit option will be available shortly.
The Chief of the Division of Sports Wagering, Carrie Torrisi, highlighted that the states participating in this initiative include Illinois, Kentucky, New Hampshire, and Vermont. Although Massachusetts, the operational base for DraftKings, would have been part of this rollout, recent regulatory changes have prohibited crypto converted to cash as a funding method for sports betting accounts.
The new regulations, which took effect on December 19, 2025, mirror existing restrictions on credit card usage for funding accounts in various jurisdictions. While the acceptance of digital assets as a funding method for licensed sports betting is still limited across the United States, some states have begun to embrace this trend. Notably, Wyoming was an early adopter, allowing crypto as a wagering funding method since 2021, while Colorado and Virginia followed suit in 2022.
In Kentucky, where regulations have been designed with digital asset considerations, the Director of Sports Wagering at the Kentucky Horse Racing & Gaming Corporation, Hannah Simms, confirmed that sports wagers can utilize approved payment forms, including digital currencies. The KHRG collaborated closely with DraftKings to assess their proposal, which included rigorous testing and vendor reviews, ultimately granting approval for the method.
Conversely, the sentiment in Massachusetts remains cautious. During a December meeting, Caitlin Monahan, director of the MGC”s Investigations and Enforcement Bureau, expressed concerns regarding the readiness of crypto as a funding source, citing potential issues around regulation and money laundering. While DraftKings is exploring the option of accepting converted crypto rather than the assets themselves, the MGC”s apprehensions reflect broader regulatory hesitance.
The introduction of crypto-to-cash deposits comes in the wake of several states banning the use of credit cards for online sports betting, a move prompted by concerns over gambling-related financial harm. States such as Iowa, New Hampshire, Rhode Island, Vermont, and Tennessee have instituted such bans, with the Illinois Gaming Board recently enacting similar regulations.
As the landscape of online sports betting evolves, DraftKings appears poised to be at the forefront of integrating digital assets into its operations, despite ongoing regulatory scrutiny.
