Ahead of Super Bowl, Warren Warns of Credit Card Junk Fees on Sports Bets and Requests Data from Sports Betting Companies

Ahead of Super Bowl, Warren Warns of Credit Card Junk Fees on Sports Bets and Requests Data from Sports Betting Companies

Americans who bet on sports "should not have to deal with undisclosed credit card fees that rig the odds against them."

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Washington, D.C. - Ahead of the Super Bowl, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to major sports betting companies requesting information on abusive credit card betting fees that rip off Americans using sport-betting platforms.

"With the Super Bowl approaching as 'the most bet-on sporting event in the nation,' I write to request information on (company's) policies regarding the use of credit cards to fund sports bets placed on your platform," wrote the Senator.

"Credit card transactions on sports gambling platforms to fund wagers are almost always classified as a 'cash advance,'"wrote the Senator. "In practice, credit card companies charge a one-time fee for each cash advance, typically the greater of $10 or 3-5% of the amount advanced. This means that customers who use their credit card to fund their account for a $20 bet would pay a $10 fee on one transaction. Americans may be prepared to lose money on a bet they make - but most are not prepared to lose an extra 50% in credit card junk fees on top of their bet."

The Senator continued: "Many users are unaware of the costs and fees associated with this type of credit card use, which can push them into financial trouble when gambling. Specifically, users are reporting that they did not realize that using their credit card to place a bet on a sports gambling website would be treated as a cash advance and accrue additional fees and interest."

The Senator concluded by requesting detailed information from sports betting companies on the usage of credit cards on their platforms and any fees associated with them.

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