Using credit cards to fund sports betting accounts can lead to unexpected high costs and financial risks. Here's what bettors need to know:

Credit Card Issues for Sports Betting:

• Sportsbook deposits are treated as cash advances, not regular purchases
• Cash advance fees typically have a $10 minimum charge
• Interest rates can reach 30% APR, regardless of regular purchase terms
• Rewards points, miles, or cashback are not earned on these transactions

Key Findings from CFPB Report:

• All major credit card issuers classify gambling transactions as cash advances
• States like Iowa and Kansas saw significant spikes in cash advance fees after legalizing sports betting
• Small bets can incur disproportionate fees (e.g., $10 fee on a $20 wager)

Safer Alternatives:

• Use cash at physical locations
• Fund accounts with debit cards linked to checking accounts
• Avoid credit cards to prevent additional fees and high interest charges

Impact on Betting Costs:

• Standard sports betting already includes a vig (-110 odds)
• Cash advance fees effectively increase the house edge
• Combined costs can significantly impact potential returns

With mobile sports betting now available in approximately 30 states and Washington, DC, understanding these financial implications is crucial for responsible gambling practices.

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