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DraftKings is taking a cautious step into the crypto world, giving some bettors a new way to fund their sportsbook accounts. Over the next few weeks, the company plans to roll out a crypto-to-cash deposit option in a small group of states, testing whether digital assets can fit within the tightly regulated U.S. betting landscape.
This is not a move toward full-on crypto betting. The setup is far more controlled, designed to satisfy regulators who remain skeptical of anything tied to digital currency.
How DraftKings’ crypto-to-cash deposits work
DraftKings Sportsbook will allow players in Illinois, Kentucky, New Hampshire, and Vermont to use cryptocurrency that is converted into U.S. dollars before it ever reaches a betting account. From a user’s perspective, the result appears to be a normal cash deposit.
DraftKings will not accept crypto directly or store it in player wallets. Instead, a third-party service handles the conversion process, typically using U.S. dollar–pegged stablecoins. Once the funds are turned into cash, they can be deposited like any other approved payment method.
That extra step does much of the heavy lifting, especially with regulators.
Why Massachusetts is blocking crypto deposits
Despite being DraftKings’ home state, Massachusetts will not be part of the rollout. Regulators there changed the rules in December, banning crypto converted to cash as a funding source for sports betting. The restriction mirrors the state’s stance on credit cards, which are also prohibited for wagering deposits.
Officials with the Massachusetts Gaming Commission have been vocal about their concerns. Enforcement leaders have said crypto lacks the regulatory maturity needed for sports betting, citing risks tied to oversight gaps and potential money laundering. Even though DraftKings conducted a limited test and put safeguards in place, the commission ultimately decided the timing was wrong.
For now, that door remains closed.
Where DraftKings accepts crypto conversions
Other states have taken a more flexible approach. Kentucky, Vermont, and New Hampshire all classify digital and virtual currencies as cash equivalents once they are converted into fiat currency. Regulators in those jurisdictions reviewed DraftKings’ proposal closely, including system walkthroughs, vendor checks, and internal controls.
Illinois landed in a similar position. Sportsbooks there cannot accept crypto directly, but they can accept funds that have already been converted into U.S. dollars through licensed money transmitters. That framework cleared the path for DraftKings to move forward.
The approvals highlight just how fragmented crypto policy remains across the country.
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A replacement for credit cards on sports betting
The timing of this rollout is hard to ignore. DraftKings stopped accepting credit cards for sportsbook deposits in 2025, citing concerns about players betting with borrowed money. Several states, including Illinois, Tennessee, Vermont, and Massachusetts, have enacted similar restrictions.
Crypto-to-cash deposits avoid some of those issues. Transactions are typically faster, chargebacks are far less common, and players are not running up credit card balances to place bets. Those differences help explain why regulators may be more comfortable with conversions than with traditional credit cards.
