DraftKings tests crypto payments in 4 US states
The betting giant becomes the first Tier-1 operator to integrate digital assets. The "Crypto-to-Cash" system will debut in Illinois, Kentucky, Vermont, and New Hampshire, allowing accounts to be funded with Bitcoin without betting directly with it.
DraftKings has decided to break down one of the last financial barriers in regulated gambling in the United States. In the coming weeks, the company will enable a feature that will allow its users in four states to convert their cryptocurrency holdings into cash to reload their gaming accounts.
This move makes DraftKings the first major American sportsbook to adopt a hybrid model. Unlike offshore sites or Wyoming (the only place where betting directly with crypto is allowed), DraftKings’ proposal uses an instant conversion gateway. The user sends cryptocurrencies, but the platform receives dollars, thus eliminating the volatility of the digital asset within the betting ecosystem.
The rejection from Massachusetts and regulatory fragmentation
The news came to light after a meeting of the Massachusetts Gaming Commission (MGC) on January 29. The regulator in that state explicitly denied DraftKings’ request to implement this model, citing a rule effective since December that prohibits the use of crypto assets as a source of funds.
However, the reality is very different in other jurisdictions. While Massachusetts closes the door, regulators in Illinois, Kentucky, Vermont, and New Hampshire have given the green light to this innovation. Virginia and Colorado also have frameworks allowing deposits converted from crypto to fiat, painting an increasingly fragmented regulatory map across the country.
An alternative after the end of credit cards
The adoption of cryptocurrencies is not a technological whim but an operational necessity. In August 2025, DraftKings stopped accepting credit card deposits nationwide, a self-imposed measure to mitigate the risks of compulsive gambling and indebtedness.
This decision left a gap in payment options that the "Crypto-to-Cash" model seeks to fill. Crypto transactions offer clear advantages: almost instant settlement (hours instead of days for withdrawals) and a drastic reduction in fraud from chargebacks, a common headache for operators. The challenge remains compliance, as verifying the source of funds in an anonymous wallet is much more complex than in a traditional bank account.
The pressure from prediction markets
The competitive context also plays a crucial role. The rise of prediction market platforms like Polymarket (entirely blockchain-based) or the crypto integration of regulated competitors like Kalshi is pushing traditional operators to modernize.
Although for now DraftKings Predictions (its own prediction markets vertical) limits deposits to traditional methods such as Apple Pay or bank transfers, this pilot in four states will serve as a testing ground. If regulators manage to balance anti-money laundering (AML) requirements with the demand for agile payments, it is likely that the model will quickly expand to other key states.
Tags: United States, USA, DraftKings, Polymarket, Kalshi, DraftKings Prediction, cryptocurrency predictive markets