DraftKings is set to introduce a new feature that will enable users to convert digital assets into cash for online betting. This development will take place in four states across the United States, according to a recent announcement from the betting platform.
The statement was confirmed during a meeting of the Massachusetts Gaming Commission (MGC), where the Chief of the Division of Sports Wagering, Carrie Torrisi, indicated that DraftKings has received approval to implement this deposit method in Illinois, Kentucky, New Hampshire, and Vermont in the coming weeks.
Interestingly, Massachusetts was initially anticipated to be included in the rollout. However, recent changes by the MGC have prohibited the use of crypto converted to cash as a legitimate funding source for sports betting accounts. This new regulation is set to take effect on December 19, 2025, following a thorough review and staff recommendation.
The restrictions imposed by Massachusetts mirror existing limitations on credit card usage for betting, effectively banning crypto converted to cash for deposits in various jurisdictions. While the acceptance of digital assets in state-regulated sports betting remains limited, some states have begun to embrace this trend. For example, Wyoming authorized the use of crypto for wagering in 2021, while Colorado and Virginia”s gaming regulators allowed crypto conversions for deposits in 2022.
DraftKings has not issued any further statements regarding this initiative. However, Hannah Simms, Director of Sports Wagering at the Kentucky Horse Racing & Gaming Corporation, noted that Kentucky”s regulations have acknowledged the potential for digital assets in sports betting. She confirmed that sports wagers could be placed using various approved payment forms, including cash equivalents converted from digital currencies.
Simms added that the KHRG staff collaborated with DraftKings to assess their proposal, which involved product testing, vendor reviews, and verification that the necessary testing had been completed successfully. After this evaluation, the method was approved for use in Kentucky, as it met the state”s regulatory requirements.
In contrast, Massachusetts regulators have granted DraftKings a temporary waiver to test this technology, which includes mechanisms for separating crypto-source funds. Nevertheless, concerns remain. Caitlin Monahan, director of the MGC”s Investigations and Enforcement Bureau, expressed skepticism about the readiness of crypto for widespread adoption in this context, citing regulatory uncertainties and potential money laundering risks.
Currently, no licensed sportsbooks in Massachusetts accept converted crypto as a funding method. DraftKings has indicated that it is only exploring the option of utilizing converted crypto rather than directly accepting digital assets. This decision comes shortly after several states, including Iowa, New Hampshire, and Vermont, have enacted bans on credit card usage for online sports betting deposits, reflecting ongoing concerns about gambling-related financial issues.
The approval by the Illinois Gaming Board to prohibit credit cards for sports wagering funding highlights the growing trend of caution among regulators regarding the intersection of digital finance and sports betting.
