DraftKings to Offer Crypto Deposits in Four States

DraftKings will soon allow crypto-to-cash deposits in four states. The sportsbook and gaming operator was approved to accept crypto deposits, which will be converted to cash before being applied to the user's account. This is a step toward embracing alternative forms of payment in sportsbooks.

At a Massachusetts Gaming Commission (MGC) meeting last week, officials confirmed DraftKings had been cleared to introduce the funding option in Illinois, Kentucky, New Hampshire, and Vermont. The rollout is expected to take place over the coming weeks, subject to individual state oversight requirements.

Massachusetts was notably excluded from the launch. Carrie Torrisi, the Sports Wagering Division Chief at the MGC, said the state would have been included had regulators not amended their rules to prohibit crypto converted to cash as an acceptable deposit method.

That restriction took effect on Dec. 19 of last year, following a regulatory review and staff recommendation. The rule aligned crypto-to-cash funding with existing credit card restrictions, preventing Massachusetts customers from using converted digital assets even when accounts were funded in other jurisdictions.

While digital assets remain uncommon in licensed US sports betting, several states have permitted limited use. Wyoming approved cryptocurrency as a wagering funding method in 2021, making it one of the earliest adopters.

Colorado and Virginia followed in 2022, allowing crypto conversions for deposits under specific regulatory conditions. The DraftKings rollout reflected that uneven regulatory landscape, where payment innovation continues to vary by state.

Massachusetts ruling adds financial pressure on DraftKings

The crypto deposit expansion arrives as DraftKings previously faced regulatory scrutiny in its home state. In December, the MGC unanimously ordered the operator to honor nearly $1 million in disputed payouts tied to a flawed MLB betting market.

Regulators rejected DraftKings' request to void $934,137 in winnings generated from a series of correlated parlays during the 2025 American League Championship Series. The wagers were placed by a single Massachusetts customer who staked $12,950 across 27 multi-leg bets involving Toronto Blue Jays player Nathan Lukes.

DraftKings acknowledged the wagers resulted from an internal configuration error. Lukes had been incorrectly labeled as a non-participant in the company's trading system, which disabled protections designed to block correlated parlays within the same market. 

That misclassification allowed the bettor to combine multiple hit thresholds, including five or more through eight or more hits, into single parlays. It was as if the bettor had made a single bet on Lukes getting at least eight hits in the series, which has a much higher probability of winning.

DraftKings argued that these bets should not have been made in the first place and that the bettor's unethical behavior enabled him to take advantage of the mistake. However, the commissioners did not agree and said that the fine stands. They also reminded DraftKings that the state strongly protects consumers and holds operators accountable