NEW YORK — The growing elimination of credit cards as a way to fund online betting accounts is increasing demand for faster bank-payment systems capable of moving large amounts of money around the clock, according to a new analysis.
Through 2025 and into 2026, states and gambling operators have increasingly restricted credit-card deposits for sports betting, largely because of concerns about consumers gambling with borrowed money, the analysis by Finsmes.com.
States prohibiting credit-card funding for online sports betting include Iowa, Illinois, Massachusetts, Tennessee, Vermont, Rhode Island, Oregon, New Hampshire and Virginia, according to Finsmes. Other states are considering restrictions.
Sportsbook operators also have imposed their own limitations. DraftKings stopped accepting credit-card deposits Aug. 25, 2025, with other major operators subsequently taking similar steps, Finsmes reported.
For recreational bettors making relatively small deposits, debit cards can provide a straightforward alternative. But the shift presents a more significant challenge for professional sports bettors, prediction-market traders and market makers that may need to transfer tens or hundreds of thousands of dollars quickly.
Traditional Bank Payments Have Limitations
The issue is particularly significant because sportsbooks and prediction markets operate around the clock while traditional banking systems do not, according to the analysis.
ACH transfers can take several business days to settle, while traditional bank wires can accommodate large transactions but generally are constrained by banking hours.
Debit cards can provide immediate access to funds but often have daily transaction limits that make them less practical for high-volume traders.
Those limitations become particularly important during nights, weekends and holidays when a trader may need to quickly add money to an account in response to market movements.
Filling the Gap
Finsmes said real-time payment networks could increasingly fill that gap.
The RTP and FedNow networks allow bank payments to clear within seconds and operate 24 hours a day, including weekends and holidays. That combination of speed and continuous availability potentially makes the networks better suited to large, time-sensitive transactions than traditional ACH and wire transfers.
Cryptocurrency conversion into U.S. dollars provides another alternative for users who already hold digital assets.
Fintechs Target Funding Gap
The changing payments environment also is creating opportunities for financial technology companies to build specialized products for regulated betting and prediction markets, Finsmes reported.
New York-based EDGE Markets, for example, has developed EDGE Boost, a limited-use deposit account and debit card designed to fund regulated gaming and prediction-market accounts.
Funds are held through an FDIC-insured bank partner, and the account uses real-time payment systems to transfer money outside traditional banking hours.
Unlike a conventional checking account or debit card, EDGE Boost limits where the money can go. Funds can be transferred to regulated and compliant venues rather than used for general purchases, according to Finsmes.
The company is also developing EDGE Pro, a separate product aimed at trading firms and professional market makers. Broker and clearing registrations associated with that initiative remain in process, according to the analysis.
The Broader Issue
The broader issue extends beyond how individual bettors deposit money.
Professional traders operating across multiple prediction markets may have to maintain separately funded accounts at each venue. That can leave significant amounts of capital sitting idle rather than being deployed where trading opportunities emerge.
As regulated prediction markets expand and trading becomes distributed among more platforms, the ability to rapidly transfer funds between financial institutions and trading venues could become increasingly important.
Finsmes said users evaluating alternatives to credit cards should consider transaction speed, availability during nights and weekends, daily transfer limits and whether funds are moving through regulated and insured financial institutions.
The movement away from credit cards, the analysis concluded, could ultimately accelerate adoption of real-time bank payments in the rapidly developing online betting and prediction-market industries.
