The question of whether you can fund an American sportsbook account with cryptocurrency comes up almost daily among bettors. Crypto is fast, borderless, and familiar to millions of people who already use Bitcoin, Ethereum, or stablecoins for trading and online purchases. Yet when it comes to legal online sports betting in the United States, the answer remains straightforward: no, not right now.
Even though offshore betting sites have been taking Bitcoin deposits for years, state-licensed sportsbooks inside the U.S. still rely exclusively on traditional banking methods. The only exception on paper is Wyoming, which passed a law in 2021 that allows operators to accept crypto as a deposit method if they convert it immediately to U.S. dollars. However, even in Wyoming, no sportsbook has actually launched that feature.
Two other states — Colorado and Virginia — briefly tested a crypto-to-USD deposit model in 2022, but the pilot ended within months. Since then, no licensed U.S. operator has accepted digital currency in any form.
This article walks you through why that’s the case, what each state allows, and how crypto might eventually fit into the American betting landscape.
Why U.S. Sportsbooks Still Use Dollars
Most people assume sportsbooks could easily add Bitcoin as a payment option the same way they add Visa or PayPal. In reality, there are layers of law and banking policy that make that much harder than it looks.
Federal compliance and banking risk
All U.S. betting operators must comply with federal anti-money-laundering (AML) rules and the Unlawful Internet Gambling Enforcement Act (UIGEA). These laws require every payment provider, from large banks to digital wallets, to confirm that any gambling transaction happens only where it’s legal.
Because cryptocurrencies move anonymously and cross borders instantly, banks see them as a risk. Accepting Bitcoin deposits could expose a licensed sportsbook to AML penalties if the source of the funds isn’t fully verified.
For that reason, most payment processors serving the regulated gaming industry simply don’t touch crypto. The result is a cautious environment where the default rule is “U.S. dollars only.”
State regulations are written around fiat money
Every state that has legalized online sports betting has written rules describing how players can deposit and withdraw funds. Those rules use terms like cash, bank transfer, and electronic funds transfer. They assume that all player accounts are held in U.S. currency and backed by real bank deposits.
To allow crypto, a regulator would have to create a new classification and audit method, something that few gaming commissions are ready to do. Most prefer to stay with proven, bank-linked systems that have clear oversight.
Technical and customer reasons
Even when crypto is theoretically allowed, it’s rarely practical for a sportsbook to handle it. The betting platforms that power brands such as DraftKings, FanDuel, BetMGM, and Caesars are built entirely in dollars. Every wager, bonus, and payout is calculated in USD. If they were to allow crypto, they’d still need to convert it instantly to maintain a consistent accounting system. That makes true crypto play unnecessary and potentially confusing for customers.
For those reasons, even the pilot programs that existed in Colorado and Virginia only used crypto as an entry method — it was converted into cash before the funds ever appeared in a player’s balance.
Where Things Stand in 2025
Below is an easy-reference table showing which states have legal online sports betting and whether crypto deposits are allowed there.
| State | Legal Online Sports Betting? | Crypto Deposits Allowed? | Notes |
| Wyoming | ✅ Yes | ⚙️ Allowed by law, but unused | State law treats crypto as a “cash equivalent,” but sportsbooks haven’t activated it. |
| Colorado | ✅ Yes | ❌ No (pilot ended) | In 2022, one sportsbook tested crypto deposits converted to USD. Ended soon after. |
| Virginia | ✅ Yes | ❌ No (pilot ended) | Tried the same limited system in 2022. Also ended. |
| All other online-betting states | ✅ Yes | ❌ No | Every major site (FanDuel, DraftKings, BetMGM, Caesars, etc.) uses only U.S. dollars. |
| States with retail-only betting | ⚠️ Partial | ❌ No | On-site or tribal sportsbooks use cash, debit, or vouchers only. |
| States with no legal sports betting | ❌ No | ❌ Not applicable | Crypto or otherwise, there are no legal sportsbooks. |
🟩 Green — Law allows it (no operator yet)
→ Wyoming
🟨 Yellow — Pilot allowed in 2022 (ended)
→ Colorado, Virginia
🟥 Red — Not allowed / not offered
→ Every other state with legal online sports betting (New Jersey, Michigan, New York, Pennsylvania, etc.)
⚫ Grey — No legal sportsbooks yet
→ Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Missouri, Oklahoma, South Carolina, Texas, Utah, and others still debating legalization.
Colorado and Virginia: The 2022 Crypto Pilot
The short-lived experiment in Colorado and Virginia is often cited as proof that crypto can work within a regulated framework. In early 2022, one licensed operator launched a program that allowed players to deposit through an approved exchange partner using selected cryptocurrencies. The system automatically converted each deposit into U.S. dollars, and those funds were credited to the player’s regular sportsbook balance.
The idea was simple: let people start with crypto but still keep everything legal and traceable. The system worked for a few months but was later discontinued when the operator rebranded and changed its technology platform. Since then, neither state has approved another trial. Regulators in both jurisdictions have said they remain “open to innovation” but want to see clear federal guidance before re-introducing crypto payments.
Wyoming’s Unique Approach
Wyoming took a different path by writing digital currency directly into its betting laws. When the state legalized online sports betting in 2021, it specified that “digital, crypto, or virtual currencies” could be used as cash equivalents for deposits, provided that operators converted them into U.S. dollars under approved procedures.
This move made Wyoming the first state in the U.S. to give crypto explicit legal recognition in sports betting. It generated buzz among industry watchers, but two years later, no sportsbook operating in the state has turned on a crypto payment option.
The reason again comes down to infrastructure. Payment processors serving licensed sportsbooks are not yet set up for digital assets, and most large operators run on shared national platforms that would need regulator-approved changes to handle crypto transactions safely. As a result, Wyoming remains a crypto-friendly jurisdiction in theory but not in practice.
The Rest of the Country
Every other state with legal online sports betting — from New Jersey and Pennsylvania to Arizona and Michigan — runs entirely on fiat money. Deposits and withdrawals go through standard banking channels like ACH, debit cards, PayPal, or the operator’s own prepaid Play+ card. Regulators have not signaled any plan to change that in the near future.
Even in tech-forward states such as Nevada, where crypto payments are common in other industries, the Nevada Gaming Control Board has maintained a cautious stance. Casinos in Las Vegas may accept crypto for hotel bookings or retail sales, but gaming transactions themselves must be handled in dollars through approved systems.
This consistent approach has given players confidence that all regulated betting money is traceable, taxed, and protected. While it can feel slow compared to the crypto world, it’s the structure that ensures every licensed operator in the U.S. meets the same standard.
Offshore Crypto Sportsbooks and Why They’re Risky
Many offshore websites advertise that they accept Bitcoin, Ethereum, or Tether and happily take bets from U.S. players. Some even copy the look and feel of legal brands to appear trustworthy. These platforms are not licensed by any U.S. regulator.
Without a state license, there’s no consumer protection if your funds vanish, no oversight of game fairness, and no legal way to resolve disputes. The sites might pay out honestly for a while, but players have no guarantee. U.S. gaming regulators and consumer agencies consistently warn that the presence of crypto deposit options is a strong indicator that a sportsbook operates illegally within the U.S. market.
That doesn’t mean every crypto casino is a scam — some are legitimate offshore entities licensed in other jurisdictions — but from an American legal standpoint, they’re outside the system. Winnings from these sites may also fall into a grey area for tax reporting, creating more complications for U.S. bettors.
How a Legal Crypto System Might Work in the Future
If crypto ever becomes common in U.S. sports betting, it will likely follow the same structure as the 2022 pilot models. Deposits would be accepted through a regulated exchange partner, converted immediately into U.S. dollars, and credited to a player’s balance. Withdrawals would still go out in dollars to a verified bank or wallet service.
Each transaction would have full identity checks, anti-money-laundering controls, and audit trails. Players wouldn’t hold crypto inside the sportsbook; they’d simply use it as a funding source. This approach balances innovation with compliance, but it requires cooperation from both state regulators and banking partners.
Some payment providers are already developing “crypto-as-fiat” solutions for other industries, so it’s possible that sports betting could eventually adopt a similar model. Still, no regulator has announced a timeline, and none of the large national operators are preparing crypto cashier options at this stage.
What Bettors Should Know Before Depositing
For anyone betting legally in the U.S., the safest approach is to stick to state-approved payment methods. Every licensed sportsbook lists its deposit options clearly, and all of them use U.S. dollars. If a site allows you to deposit in Bitcoin or asks you to send funds to a crypto wallet, that’s a clear warning sign that it’s not regulated locally.
Using unlicensed sites also means you lose access to key protections: responsible-gaming tools, deposit limits, self-exclusion programs, and guaranteed payouts. Legal sportsbooks are required to honor withdrawals and maintain separate player-fund accounts. Offshore crypto sites are not bound by those rules.
If you still prefer to use crypto to fund betting, you’ll need to choose international platforms based in places like Curaçao or Cyprus — but you should do so with full awareness that those sites are not covered by U.S. law.
The Bigger Picture: Dollars Still Dominate
Even as crypto grows in other financial sectors, traditional payment rails still dominate regulated online gambling. The infrastructure that supports U.S. sportsbooks, from identity verification to payment settlement, is designed around the banking system. Until regulators and processors agree on a safe, transparent way to handle blockchain transactions, crypto will remain on the sidelines.
Some analysts predict that stablecoins could eventually bridge that gap because they maintain a fixed value tied to the U.S. dollar. If that happens, states like Wyoming will be well positioned to lead, since their laws already include “digital currencies” in the list of approved deposit forms. But widespread adoption will depend on federal clarity and industry testing.
The Bottom Line
| Category | Current Reality (2025) |
| Licensed sportsbooks accepting crypto | 0 |
| States legally permitting crypto deposits | 1 (Wyoming) |
| States that tested crypto deposits | 2 (Colorado, Virginia) |
| States using only fiat money | Every other legal market |
| Safe crypto option for U.S. bettors | None under state regulation |
Final Thoughts
In simple terms, U.S. sports betting and cryptocurrency haven’t met in the middle yet. Wyoming has the legal doorway open but hasn’t walked through it. Colorado and Virginia experimented briefly, then stepped back. Every other state is staying with the banking system it knows.
For now, American bettors should expect to keep depositing with debit cards, bank transfers, and prepaid wallets, not Bitcoin or Ethereum. That might change one day, but until regulators, banks, and sportsbooks all agree on how to handle digital assets safely, crypto will remain outside the U.S. sports betting mainstream.
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