How To Deposit & Withdraw Money in DraftKings

By Daily Fantasy Focus

August 19, 2021


The primary purpose of DraftKings is to enter fantasy contests and bet on sports online. Although you can do this for free with promotional deals, daily rewards, and other free methods, you won’t earn a substantial amount back. That’s why people deposit money, as you’ll have a much better chance of having higher returns. But, how do you deposit and withdraw money in DraftKings?

To deposit money, you’ll be able to use almost any major credit or debit card, which can be found in the deposit tab. With withdraw, you’ll want to submit a request through the “Accounts Page” and then “Withdrawal.”

Without a doubt, depositing and withdrawing money in and out of DraftKings is immensely easy. They even automatically withdraw funds to the last active debit or credit card if there isn’t any activity on the account for six months.

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How Do I Fund My DraftKings Account?

Loading funds to your DraftKings account is effortless. All you need to do is head over to your DraftKings account and click the green “Deposit” button in the top right corner of the main page. From there, select the preferred payment method; DraftKings accepts all major credit and debit cards as well as PayPal. You can also make a deposit directly from your checking account.

You can even make deposits and withdrawals in states that do not permit sports betting, although you can’t make a real bet while you’re in the state.

Any deposits made via debit or credit card will appear instantly in your account. PayPal generally is just as fast, but it can take a bit longer sometimes. Bank transfers can take a couple of days sometimes, so it is a bit slower. 

It’s just as simple as that. You don’t need to bother looking for ATMs or carrying cash around with you anymore. So, now that you know how to make a deposit, you’ll need to know about deposit limits as there are thresholds.

What Is The DraftKings Deposit Limit?

When making deposits on DraftKings, you have a couple of upper and lower limits on deposits to keep in mind. The minimum deposit is $5, while the upper limit is $2,000. As long as your deposit falls within those bounds, you won’t have a problem.

How Do I Submit a Withdrawal Request?

Submitting a withdrawal request is just as easy. Head over to DraftKings and log into your account. In the upper right-hand part of the screen, you’ll see the “my account” tab on the drop-down menu. Click that, and then you’ll see “withdraw” on the left.

You’ll then have the option either to withdraw the funds by PayPal or via check. You’ll need to have at least $20 available to initiate a withdrawal. It’s important to note that DraftKings will first refund the payment method used for a deposit. Then the remaining winnings will be sent via either check or PayPal.  This can take different amounts of time, depending on which method you use.

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How Long Do DraftKings Withdrawals Take?

It will depend on which method of withdrawal you use. PayPal withdrawals are typically completed within two days and often sooner. This is generally the preferred withdrawal method. PayPal is a fast, secure method to withdraw your winnings. Your PayPal account can then be linked to your bank account to transfer the funds to your checking account.

For checks, the withdrawal process can take a bit longer. To process and mail, the check can take anywhere from 7-14 days. Checks are still an excellent method once you’re earning a regular profit, once they start coming in more regularly. It’s definitely the case, though, that digital transactions are faster and smoother.

Is There a Limit To How Much I Can Withdraw?

There are limits for each withdrawal method, though there is no maximum lifetime amount you can withdraw. Each method has different single withdrawal limits. Via PayPal or check, the limits are $60,000 and $50,000, respectively, in 3-5 days. So, these are easily the most efficient ways to withdraw.

Do I Have To Pay Tax On My DraftKings Earnings?

Whether or not you need to pay tax on your earnings depends on how lucky you get. It comes down to how much you earn in a financial year. If you have a good year and bring home a net profit of $600 or more for the year, DraftKings will send a tax form to both you and the IRS.

Which form it is can depend on how you withdraw your winnings. It will typically be a Form 1099-MISC. However, if you use PayPal, it may be a 1099-K.

These forms report your winnings to the relevant authorities and give you notice of the amount you must report on your taxes. Even if you don’t receive the form from DraftKings for any reason, you’ll still need to submit your own.

DraftKings will typically calculate the net profits of players to determine who needs to be sent the tax paperwork.

You need to report all income earned on DraftKings as “other income” on Schedule 1 for Form 1040. You can also establish that you’re using DraftKings as a business, in which case you report your profits as a business income on Schedule C.

This also means that you can report all losses as well, and if you had a net loss for a year, you could reduce the taxable portion of your other sources of income.

What If I Don’t Win Over $600?

Even if you don’t hit the threshold which you actually have to pay taxes, you’ll still need to report the income to the IRS. It won’t be taxed in this case, but you do still have to report it as income.

What Is The Tax Rate On DraftKings Winnings?

Winnings of 600 dollars or more will be taxed at a rate of 24%. Those winnings will come out either at the time they’re paid out from the site or when you file your taxes. Winnings over that threshold are taxed like other income.

DraftKings is simple, fast, and intuitive. Getting money in or out is quick and simple, and it makes fantasy sports betting smoother than it’s ever been before. Whether you’re just getting started or you’ve been betting on fantasy sports for years, DraftKings is a great place to bet.

Daily Fantasy Focus

About the author

Daily Fantasy Sports (DFF) is a resource to help you learn how to use Daily Fantasy Sports platforms.

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