DraftKings reportedly set to accept crypto-to-cash deposits in four US states

• DraftKings is preparing to launch cryptocurrency-to-cash conversion deposits in Illinois, Kentucky, New Hampshire and Vermont.
• Massachusetts Gaming Commission disclosed planned rollout after banning crypto in its own state on 19 December 2025.
• Wyoming permitted direct crypto in 2021, whilst Colorado and Virginia approved conversions in 2022.

DraftKings is reportedly preparing to launch a cryptocurrency-to-cash deposit service across four US states, according to disclosures made at a Massachusetts Gaming Commission meeting.

The operator has received approval to enable players in Illinois, Kentucky, New Hampshire and Vermont to fund accounts using digital assets that convert instantly to US dollars.

Rollout planned for coming weeks

Carrie Torrisi, Chief of the Division of Sports Wagering, disclosed that DraftKings has approval to introduce the deposit method in four states during a late January Massachusetts Gaming Commission meeting. MGC Chair Jordan Maynard confirmed the jurisdictions, with rollout expected “over the coming weeks.”

Massachusetts will not participate. The MGC banned crypto converted to cash on 19 December 2025, implementing restrictions similar to credit card limitations. Caitlin Monahan, Director of the MGC’s Investigations and Enforcement Bureau, cited insufficient regulations around digital assets and money laundering risks.

“We believe, basically, crypto is not ready for primetime,” Monahan said.

State regulators complete approval process

Hannah Simms, Director of Sports Wagering at Kentucky Horse Racing & Gaming Corporation, confirmed that Kentucky’s sports wagering regulations accommodate digital assets as cash equivalents that can be converted to cash for wagering.

KHRG staff worked with DraftKings on product testing, vendor review and verification before granting approval. Vermont Department of Liquor and Lottery issued similar approval through Hannah Chauvin, Director of Communications and Legal Affairs.

Illinois recently banned credit card use for sports wagering, joining New Hampshire, Rhode Island, Vermont, Tennessee and Iowa. DraftKings discontinued credit card funding months ago, citing problem gambling concerns and the financial burden of interest charges on customers.

Conversion model bypasses direct crypto handling

The planned crypto-to-cash system will convert deposits immediately into US currency. Players will not wager directly with cryptocurrencies, potentially navigating regulatory complications where direct cryptocurrency gambling remains unclear.

DraftKings Director Pete Harrington reportedly clarified that the company is exploring converted crypto rather than accepting digital assets directly. Specific cryptocurrencies have not been disclosed, though industry observers anticipate popular options including Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

DraftKings would never directly handle cryptocurrency under this model, receiving only US dollar deposits similar to credit cards or bank transfers. This structure may prove essential for compliance with state gaming regulations that have not explicitly addressed cryptocurrency gambling.

The instant conversion feature differentiates this offering from earlier cryptocurrency gambling solutions that required manual exchanges or created delays between conversion and deposit.

Limited crypto adoption in regulated markets

Wyoming permitted crypto as a wagering funding method in 2021, becoming the first state to approve the funding source. Colorado and Virginia allowed crypto conversions in 2022, though implementation remains limited across the industry.

DraftKings CEO Jason Robins has previously addressed cryptocurrency adoption during earnings discussions. According to reports, Robins acknowledged the company is examining crypto options but emphasised the need for regulatory comfort, noting that only a handful of states currently permit such arrangements.

The operator launched an NFT marketplace in 2021, demonstrating ongoing interest in blockchain-based technologies and digital asset integration beyond traditional payment methods.

Testing ground for potential expansion

The reported four-state rollout would position DraftKings among a small number of operators exploring cryptocurrency payment solutions in regulated US markets. Converting crypto to cash before gambling transactions appears to be emerging as a compliance strategy for navigating uncertain regulatory frameworks.

The approach differs from offshore gambling sites that accept direct cryptocurrency wagers. By maintaining fiat currency transactions on the platform side, DraftKings aims to satisfy regulatory requirements whilst providing crypto holders with deposit options.

The four-state launch may serve as a testing ground before potential expansion to additional jurisdictions. DraftKings could assess customer demand, operational challenges and regulatory responses in these initial markets before committing to broader deployment.

The selective state availability likely reflects varying regulatory interpretations and compliance requirements across different jurisdictions. Some states maintain stricter oversight of cryptocurrency-related financial transactions, even when converted to fiat currency before reaching player accounts.