With Missouri expected to launch online sports betting next year, and assuming no additional states join in 2025, roughly 30 states and Washington, D.C., will offer true mobile wagering that doesn’t require a trip to a physical casino.

While mobile sports betting offers convenience—with an estimated 80–90% of U.S. wagers placed via mobile devices or computers—bettors should exercise caution when funding accounts, especially with credit cards.

The Hidden Costs of Credit Card Deposits

A recent report by the Consumer Financial Protection Bureau (CFPB) reveals a costly pitfall: sportsbooks allowing credit card deposits treat these transactions as cash advances. Unlike regular purchases, cash advances incur higher fees and interest rates, making credit card funding significantly more expensive than using cash or a debit card linked to a checking account.

More Than Just the Vig

For sports bettors, these fees act as another “vig” (a term used to describe the built-in charge on a sports wager). In a typical -110 wager, a bettor risks $110 to win $100, with the $10 difference going to the sportsbook as a convenience fee. Add cash advance costs to the mix, and the cost of betting climbs significantly.

The CFPB highlights that even small deposits can become disproportionately expensive, especially when combined with interest charges that begin accruing immediately.

The Link Between Sports Betting and Cash Advances

The CFPB’s data analysis from Iowa and Kansas—two states that recently legalized sports betting—indicates a clear connection between mobile wagering and a surge in cash advance activity.

In both states, the percentage of credit card accounts incurring cash advance fees spiked in the first month after legalization. This trend suggests many bettors are funding their accounts through credit cards despite the financial drawbacks.

Bottom Line

While mobile sports betting continues to grow, players should think twice before using credit cards to fund their accounts. The hidden costs of cash advance fees and high-interest rates can quickly erode winnings—or worse, deepen losses. Safer alternatives like debit cards or direct deposits offer the same convenience without the added expense.

Bettors beware: Convenience shouldn’t come at such a high price.

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