Using credit cards for sports betting can lead to unexpected high costs and financial risks. Credit card companies treat these transactions as cash advances, not regular purchases, resulting in additional fees and higher interest rates.

Key points to consider:

• Most sportsbook operators allow credit card deposits but classify them as cash advances
• Cash advance fees typically have a $10 minimum charge regardless of transaction size
• Interest rates for gambling-related cash advances commonly reach 30%
• These transactions don't earn rewards, points, or cashback
• Fees apply even if you normally don't pay interest on regular purchases

According to the Consumer Financial Protection Bureau (CFPB):

• All major credit card issuers treat gambling transactions as cash advances
• States like Iowa and Kansas saw significant spikes in cash advance fees after legalizing sports betting
• Small bets face disproportionate fees ($10 fee applies whether betting $20 or $200)

Safer alternatives for funding sports betting accounts:

• Cash deposits at physical locations
• Debit cards linked to checking accounts
• Electronic bank transfers

With mobile sports betting now legal in approximately 30 states and Washington, DC, understanding these financial implications is crucial before placing bets using credit cards.

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