Caesars No Longer Accepting Credit Card Transactions
Caesars is joining a long list of gambling brands that no longer accept credit card payments in the U.S. market.
Many of the top sports betting sites have already stopped accepting credit card payments. Now, Caesars has joined those ranks.
Credit card payments are a thing of the past for Caesars
Caesars' ban on credit cards applies to all of their U.S. betting brands, not just the online casino and sportsbook, but also the Horseshoe online casino and the WSOP site.
Players can still use debit cards, online banking, Venmo, Play+ prepaid cards, and Apple Pay for deposits and quick withdrawals. Cash at the cage is another option at retail locations.
Caesars is late to the party
Other top betting platforms in the U.S. market have already discontinued credit card payments. DraftKings, FanDuel, bet365, and BetMGM no longer accept credit cards as payment options.
Some brands still do, such as BetRivers, Bally’s, and Hard Rock, but that may change in the not-too-distant future.
Jurisdictional issues
There are already several states that restrict the use of credit cards for online gambling. A few also have bills in progress to ban credit card payments.
States and government-run gambling regulators cite responsible gambling issues as the main concern with credit card transactions. In addition, fraud is more prevalent in credit card transactions.
Why are gambling companies discontinuing credit card payments?
The online casino industry has consistently struggled with fraud prevention and identity theft.
With credit card payments, players need to share their banking information, which criminals consistently seek to steal. On top of that, banning credit cards makes it harder to simply use your card to make a deposit, which can curb problem gambling.
On most U.S. platforms, online banking is now the only method that requires you to share your banking info with the site. That is not the case with other payment methods, such as e-wallets and prepaid vouchers.
With less personal information shared with an online betting platform, it becomes less likely that third parties can access it for fraudulent use.
Minimal financial impact
The credit card ban at online sportsbooks and casinos is producing a surprisingly minimal financial impact.
Citizens JMP Securities equity research analyst Jordan Bender pointed it out. He said the headline of the issue outweighed the facts.
When speaking about DraftKings ending credit card transactions last summer, Bender said the handle of the betting giant was “not materially different in the months following the implementation.”
Reports indicate that only 10% to 20% of U.S. online gambling utilizes credit cards.
The player’s benefit
Credit card transactions at online gambling platforms incur higher processing fees. Operators see other options as being more cost-efficient, which they are for the players.
The cost-efficiency issue, as well as those related to responsible gambling and reduced third-party interference, seem to outweigh the benefits.
As a result, Caesars and other top U.S. gambling platforms have stopped accepting credit card payments on their sites.
