Key takeout
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Most major credit card issuers do not allow you to purchase gambling with your credit card, even if you officially refuse to trade on a conditional basis or informally.
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Issuers who allow gambling purchases often treat fees as cash advances.
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Using a credit card for online gambling involves more risk than benefits.
Gambling is like American entertainment, and is as American as Apple Pie and Rum Running. Over half (55%) of American adults participated in some form of gambling in past calendar years. 2024 Report from the American Gaming Association (AGA). Of those who gambled, 21% placed sports bets. In fact, since the Supreme Court repealed the Expert and Amateur Sports Protection Act (PASPA) in 2018, Americans have legally bet $220 million nationwide. 2023 AGA Report Trends Report after Passpa.
It’s no surprise that consumers are gambling more and more out of the comfort of their homes. However, you should know this before you drop your credit card information on a sports betting site. Most credit cards are not an acceptable form of payment for online gambling.
This is not the fault of gambling sites. Almost all gambling sites accept credit cards as a form of payment. Instead, it is the card issuer who has cold feet about pulling the lever by allowing these purchases. These five facts help you understand how the issuer views this type of transaction and what happens when you try to use your credit card for online gambling.
1. Most large publishers do not allow online gambling purchases
The most important obstacle to your ability to fund online gambling using your credit card is the card issuer. Many major US issuers, such as Wells Fargo and Citibank, have specifically addressed online gambling on card terms, whether to ban it or other “illegal conduct” or outline how it will be dealt with.
The exact language of illegal activities will vary by publisher. For example, Chase no longer explicitly lists online gambling as illegal activities, but that doesn’t mean that banks routinely approve their purchases.
The issuer may accept or reject the transaction at its discretion. Many will refuse online gambling transactions faster than there is a risk to legal waters.
2. Issuers often classify online gambling purchases as cash advance
There is another concern that you can use your card to take risks even if your card issuer does not strictly prohibit online gambling purchases. Some publishers classify “cash-like” purchases similar to online gambling Cash Advanced.
For example, Chase is Sample Cardholder Contract that:
“Trades like cash are treated as cash advances. Transactions like cash include, but are not limited to, lottery tickets, casino game chips, racetrack bets, and similar offline and online betting transactions purchases.”
This is a problem for cardholders for several reasons.
- You will need to pay a cash advance fee. Most issuers charge Cash Advanced fees. It is usually larger than 5% or $10 per transaction. This fee may be added immediately, depending on the frequency and amount of gambling on your card.
- Cash Advance may be below card limits. Issuers also tend to limit the amounts they can withdraw as cash advances to a certain percentage of the maximum credit limit. Depending on the wager, there may be no sufficient limits to satisfy the transaction.
- Your transaction may be subject to Cash Advanced APR: Cash Advance separates an annual percentage rate (APR) from traditional purchase APRs. If you add shaming to your injury, your cash advance will start earning interest the moment you make a transaction. If you don’t repay these cash advances immediately after execution, your card balance will immediately start to take interest.
Additionally, if your card offers payment plan options, gambling fees may not be qualified. For example, American Express classifies online bets as cash advances, just like Chase does. Amex also excludes “cash or cash equivalent purchases.” Pay over time Payment plan.
3. Probably won’t earn rewards
Most issuers don’t want to allow online gambling purchases with credit cards, so you can Also, a card that earns rewards About these purchases. Even if the issuer processes online gambling payments as cash advances, these transactions (and others, such as balance transfer payments) are not eligible to earn cashback or other rewards.
Gambling purchases are unlikely to count towards your spending requirements to earn a welcoming bonus. So, even the best credit cards for online gambling don’t actually offer any benefits other than treating gambling transactions as cash advances.
4. Some states have completely banned online gambling
Even if you find a credit card that suits your online gambling needs, you may still be residing in a state that completely prohibits this law. This is a strong majority. According to gambling.comIn the following several states, online casinos, poker, or both are permitted.
- Connecticut
- Delaware
- Michigan
- Nevada
- New Jersey
- Pennsylvania
- West Virginia
5. Your credit score is on the line
It’s not just a betting money when using your credit card for online gambling – you’re betting Your Credit Score. Swelling, late fees and cash advances can all accumulate in your card balance.
Your credit card and gambling regularly may also raise you Credit usage rate If you have a balance. Credit utilization is the percentage of credits you use and the total credits available and play an important role in determining your credit score. Ideally, you want to keep that percentage below 30%.
Once these factors start to sum, it can be difficult to maintain payments and pay off debts. This will ultimately hurt your credit score and make it even more difficult to borrow in the future.
Conclusion
So why do people want to use their credit cards for online gambling? Often, it comes down to the security and ease of use of the card. Credit cards remain one of them The safest way to buy onlinethanks to the robust protection provided by the publisher. Also, most consumers already make many online purchases using credit cards, so it’s natural to continue that practice with a different form of online payment.
However, given the restrictions set by the issuer and the potential harms of online gambling with credit cards, it is best to stick to a debit card if you want to gamble, as it can result in a credit score and finances.
If you are worried about card usage and gambling issues, check out available checkouts resource Like National Issues Gambling Helpline For help.