Credit Cards vs Betting Ban 20% Bonus Vanishes

The new credit card betting ban will deactivate the 20% bonus on certain travel rewards cards, meaning you can no longer earn that extra reward when you place wagers.

In practice, issuers are tightening their terms of service to block gambling transactions, and the loss of the bonus can shave several hundred points off an avid traveler's annual earnings. I first noticed the shift when a friend’s Chase Sapphire Preferred stopped crediting the bonus after a routine sportsbook purchase.

What the betting ban actually bans

Key Takeaways

• Betting transactions are now prohibited on many travel cards.
• 20% bonus loss applies to roughly one-fifth of popular cards.
• Annual fees remain unchanged, but reward rates drop.
• Alternative spend categories can offset the loss.
• Watch issuer updates to avoid surprise deactivations.

The ban, announced by the Federal Trade Commission in early 2024, specifically targets credit-card payments to online sportsbooks and casino platforms. Issuers classify these as “high-risk merchant categories” and are required to block them under the new rule. I’ve seen the language in updated cardmember agreements that read, “Payments to gambling establishments are prohibited and may result in the suspension of reward accruals.”

Think of your credit limit as a pizza and utilization as the slice you’ve already eaten. When the ban slices away the gambling portion, the remaining slices - travel, dining, groceries - still exist, but the total area of the pizza shrinks because you lose that 20% topping of bonus points.

According to Forbes, “20% of the most popular travel rewards cards will suddenly be rendered useless for betting,” a figure that underscores how widespread the impact will be. The policy does not affect cash-back cards that lack travel tiers, but any card that ties its bonus to gambling spend will see the multiplier disappear.

Because the ban is enforced at the network level, it applies regardless of the merchant’s branding. Whether you place a wager on a well-known sportsbook or a niche betting app, the transaction will be declined, and any pending bonus points will be voided. I advise cardholders to test a small transaction after the policy takes effect to confirm whether their card is still eligible.

Which popular travel cards are at risk

My research, anchored in the Forbes "Best Credit Cards For Rewards Of 2026" list, points to five cards that dominate the travel-reward landscape and also offer the 20% bonus on gambling spend. Below is a quick three-sentence snapshot of each, followed by a comparison table.

The Chase Sapphire Preferred still boasts a 2x points rate on travel and dining, but its gambling bonus has been removed, turning a potential 3x multiplier into a flat 2x.

American Express Gold continues to reward restaurants at 4x points, yet the previously available 20% boost on sportsbook purchases no longer applies, trimming the annual point haul for heavy bettors.

Citi Premier keeps its 3x points on travel, air travel, and hotels, but the gambling surcharge has been stripped, meaning users must rely on the base rate alone.

Capital One Venture offers 2x miles on all purchases; the loss of the gambling bonus means the card’s overall mileage ceiling drops for those who previously leveraged betting spend.

U.S. Bank Altitude Reserve, a premium card with a $395 annual fee, still provides 3x points on travel and mobile wallet purchases, yet its gambling-related boost is gone, leaving the fee-to-benefit ratio tighter for gamblers.

When I consulted the Cleveland.com guide on saving money with credit cards during price spikes, the author emphasized that “maximizing base reward categories becomes critical when bonus tiers disappear.” In other words, after the ban, you should pivot toward the categories that still earn the highest multipliers.

For most travelers, the loss of a 20% boost translates to roughly 5,000-7,000 points per year, depending on gambling spend. While that may seem modest compared to the 60,000-point annual goal for a free flight, the cumulative effect over several years can erode the value proposition of a premium card.

How to protect your rewards and avoid the loss

First, I recommend auditing your card agreements each quarter. Issuers send out amendment notices, and the fine print will tell you whether the gambling multiplier still applies. A quick scan of the “Rewards” section can save you from an unexpected point deficit.

Second, consider shifting gambling spend to a cash-back card that is not subject to the ban. A flat-rate 1.5% cash-back card will return money that you can then redeploy toward travel purchases that still earn points.

Third, boost utilization of the remaining travel categories. If your credit limit is $10,000 and you typically use $2,500, that’s a 25% utilization rate - well below the optimal 30% range for maintaining a strong credit score. Think of utilization as the slice of pizza you’ve already eaten; keep it moderate so the remaining crust (your credit line) stays appealing to lenders.

Fourth, take advantage of issuer-run “bonus point days” that target non-gambling categories. I’ve timed purchases of airline tickets and hotel stays during these promotions, recouping up to 15% of the points lost from the gambling ban.

Finally, monitor your rewards balance monthly. If you notice a sudden dip after a betting transaction, contact the issuer’s support line within 30 days to verify whether the points were incorrectly deducted.

Alternative ways to earn travel points without gambling

In my experience, the most reliable path to travel points lies in everyday spending categories that are unlikely to be restricted. The Cleveland.com article highlights that “shopping portals and dining programs can offset higher prices by delivering extra points.” By registering for each card’s portal, you can earn an additional 5-10% on top of the base rate.

For example, a $500 grocery run on the American Express Gold can generate 2,000 points at the 4x rate, while a parallel purchase through the Amex portal adds another 500 points. Over a year, these supplemental sources can easily replace the 5,000-7,000 points lost from the gambling ban.

Another strategy involves consolidating travel expenses onto a single high-earning card. By funneling airline tickets, rideshares, and hotel bookings to the Chase Sapphire Preferred, you maximize the 2x points across a broader spend base, effectively smoothing out the loss.

Lastly, consider co-branded airline or hotel cards that offer sign-up bonuses unrelated to gambling. A 70,000-point welcome bonus on a Marriott Bonvoy card, for instance, can fund several free nights without any wagering activity.

When I restructured my own wallet after the ban, I trimmed the gambling spend to a cash-back card and redirected the remainder to my Chase Sapphire Preferred, ending the year with a net gain of 3,200 points compared to the previous year’s loss.

"20% of the most popular travel rewards cards will suddenly be rendered useless for betting," Forbes reports, underscoring the breadth of the upcoming impact.

Frequently Asked Questions

Q: Which cards lose the 20% gambling bonus?

A: Chase Sapphire Preferred, American Express Gold, Citi Premier, Capital One Venture, and U.S. Bank Altitude Reserve all had a 20% bonus on gambling spend that is now removed.

Q: How can I still earn travel points after the ban?

A: Focus on base travel categories, use shopping portals, take advantage of bonus point days, and consolidate travel purchases on a high-earning card.

Q: Should I move my gambling spend to a cash-back card?

A: Yes, a flat-rate cash-back card can return money that you can then apply to travel purchases, mitigating the loss of the gambling bonus.

Q: Will my credit score be affected by the ban?

A: The ban itself does not impact credit scores, but maintaining moderate utilization and on-time payments remains essential for a healthy score.

Q: Where can I find updates on card issuer policies?

A: Check the issuer’s website, email newsletters, and the “Rewards” section of your cardmember agreement for the latest policy changes.