Discover has sent out a note to cardholders stating that online gambling will code as a cash advance:
We are writing to inform you that starting on April 16, 2024, online gambling transactions (for example, transactions on sports betting websites) will be treated as cash advances as stated in your Cardmember Agreement, and your standard cash advance Annual Percentage Rate (APR) and fee will apply to these transactions. Prior to this date, these transactions may have posted as purchases.
As a reminder, there is no grace period for cash advances; we begin charging interest on cash advances as of the later of the transaction date or the first day of the billing period in which the transaction posts to your account. Cash advances are subject to your cash credit line and do not earn rewards.
You can enroll in cash advance alerts by visiting your online account at Discover.com to be notified any time a cash advance occurs on your account.
I’m surprised this wasn’t already the case.
Hat tip to avsterbone
Ill be losing 1500 a month after April 16, Cant believe it lasted this long..
So, you were MSing doing this or actually gambling?
MS you could withdraw without gambling
which sportsbook?
I’m sure Discover is going to return all the merchant processing fees back to the online gambling sites as well.
This is a end of an era for me. But nothing is lost. I found a loophole with Discover. I had 2 cards (one has a credit limit of $10,300 and the other one is $8,000). Daily, I deposit aggregated $18,300 and withdraw instantly and net ($183.00 = 1% cashback of $18,300)…6 days a week with the exception of Sunday. Very profitable considering that I’m only pushing buttons daily. The kicker is that the $8,000 card is eligible for the first year with a cashback match feature. I just got the notice from Discover. It’s confusing bc my friend didn’t get the same notice. So I think that this not a policy but target people who find the loopholes. I asked Discover to show me their “new” policy but they said that they’ll MAIL it to me, but there is not “official” policy online.
Anyway, I brainstormed another loophole to get the same output so one monkey doesn’t spoil the circus
Aha
what site lets you withdraw without gambling first?
The gambling sites charge a % though. It’s small/medium but it adds up, enough for there NOT to be a true arbitrage opportunity. You weren’t charging $18,300 and getting $18,300 back without bleeding off a % to the gambling sites. You think they just eat CC processing fees from degenerates? Nope.
Cute story though.
I hate to be rude but you’re straight up making shitt up lol.
Your story is fictitious for a variety of reasons.
First no sportsbooks allow deposits without any play through.
Some dfs apps allow withdrawing without play through but SPORTSBOOKS require play through of deposit.
Another issue no way your resetting your balance every day.
Deposit 10k to sportsbook. Same day pay off balance of card??
Next day balance is updated???
Obviously that’s not how it works.
The most glaring issue with your story is limits.
Let’s pretend for a second the maneuvers your claiming are possible.
You will get limited by these sportsbooks.
18k a day deposits without placing any wagers sticks out like a sore thumb
But that’s not important because the maneuvers your describing aren’t possible
I don’t like to comment on this site due to all the poor information but the amount of mis information on this post is absurd
I was also highly skeptical of the comment from
MS John. I noticed that you didn’t reply to the comment from 
BB. By not replying, are you implying that you believe their highly embellished comment?
wont give it out here in public, but with a little tweaking you could take out your money without gambling, obviously not 18k, but if you build up slow you could do several thousand a day per account.
Hey, could you share your loophole?
Good on them
Damn didnt know this coded as a purchase. Any other issuers remain that do?
It actually coded as “Travel” for DraftKings and Caesars Sportsbook. So, you potentially could’ve gotten 5% back if that was ever the quarterly bonus.
This is a bad switch, but at least you get another month.
Welcome to Capital One’s Discover.
Of course the deal hasn’t gone through (and I suspect it won’t).
Why wouldnt it? They’ll be a direct competitor to Visa and Mastercard. Although it won’t benefit us, capital one will be able to lower vendor fees.
As a vendor you should be happy, as a normal person I wouldn’t be ecstatic.
“Able”, “will”, and “desire to” are 3 separate concepts
I didn’t know you could use Discover credit cards on sports gambling sites. I’ll have to try this out later today when I likely need to reload.
It’s on and off for certain websites. DraftKings usually lets you do it once or twice and then blocks it. If you delete the card or re-enter as a new card it should reset the cycle.
I’ve never been denied on Draftkings, Fanduel, or Caesars and deposited close to a million dollars total over 3 years. This one hurts.
That’s child’s play compared to
BB. Why are you slacking?
I know. Those numbers are wild
Those numbers are bullshit
I mean, if you have one million you don’t really need to use a credit card. That 1% cash back really makes a difference? You could just sign up for a Discover Debit Card with 1% cash back.
It’s getting harder to Arb sports bets anyways with lines being moved quicker and getting limited on the books so this doesnt sting as much as the past 2 years. But it was quite profitable for a while betting on both sides of certain games for a guaranteed profit plus getting the 1% back on top of it. Then withdrawal and pay the credit card off and charge it up again. It’s crazy that the only thing I ever heard from Discover was them raising my credit limits. Never tried Discover debit but every bank debit card I ever used gave me problems long before I ever reached the numbers I’d hit with Discover credit card.
Can’t you use Play+ to fund??
Bill
I’ve never actually used that or looked into it
You’d only get $30 max a month and Disc would likely not pay it. Just going off of my experience w trying it on diff sites…Also, there’s the float when you pay w cc vs just shelling out $1 million outright. Even if you paid it back within a day and was getting just 1% interest in a sav acct, you’d lose about $27 interest in a day. That’s nearly all of the cashback.
So a free $10k over 3 years? Very nice!
love when banks try to control what we do with our money
How is it your money? Discover has been allowing us an interest free loan on funding gambling sites all of this time (unbeknownst to me).
Do you mean I cannot max out my credit card, not pay it off, and then claim that all that available credit that I used was no “my money”?
You could look at it in a more positive way:
Special Offer now through April 15th!
Unlimited MS with no cash advance fees!
Damn – end of an era. Made like $80K a year from this method. Oh well. There are other issuers that allow this but they are definitely smaller and more obscure.
So you charged $8 million on your Discover card each year funding gambling? How much of that $8 million did you end up losing?
Apparently you add funds to your gambling account, get the points, then cash out. A form of MS, looks like. Sometimes it worked for a 5% category like travel.
I’m just gleaning this from the comments.
I once funded FanDuel with $20 or $30 using my debit card and my only options were to gamble the money or to have it returned to my debit card. I doubt that DK and others have more lax policies but who knows?
What I do know is that there is close to a 0% chance that they let
BB get away with charging $8 million and immediately withdrawing the money throughout the year.
Bad guess on my part. I know nothing about this corner of MS.
A few sites let you automatically withdraw. The majority have at least a 1x play through so if you deposit 100 you need to wager 100 on the casino or sports.
DraftKings didn’t require as sometimes I would deposit 100 and play until I made enough for lunch, usually less than 100 thankfully and then withdraw the profit.
Other sites would process your withdrawal as a refund if you tried to withdraw without a 1x play through and this takes a long time. I’m actually going through an issue with FanDuel for over two weeks as a result.
But, as others have said, if you deposited 8 million up instantly withdraw it you would be getting a lot of letters from DraftKings, Discover, your bank and potentially the government.
Or potentially a visit from IRS Criminal Investigation
Do you really think that a big shot like
BB worries about those kinds of things? They just keep on rolling with the punches.
i think he said 80k you do …. and call the customer service and …. ask them for a refund takes a bit of churning you could also arb on oscars if you’re in a certain state….
No, he wrote “Made like $80K a year”. Since Discover only gives 1% CB, that would mean that he charged $8 million to his card each year funding gambling.
If you believe that, I might have a good deal to sell you a piece of the GWB.
While it may not be expressly written in the terms, its kind of understood that any deposit be played through at least once before a withdraw. Their system will alert them. I’ve done a lot on my Discover but they were transactions I was going to do anyways,
I did far less than those numbers but here in Michigan, we have 14 sites to gamble with so the odds on the sites for certain things vary greatly. Like, right now the Buffalo Sabres +1.5 goals is a -145 on Firekeepers and the Edmonton Oilers -1.5 goals on Play Eagle is +150. So basically, you can bet $1,000 on Buffalo and then $676 on Edmonton and no matter what happens you get paid out $1689 since you’re guaranteed to win 1 of the bets.
So you make $13 on the bet plus get 1% back on the deposits. You played thru the money so you can now withdrawal and pay off the credit card.
Used to be far easier with the ability to make higher amounts with the arbitrage but these sites eventually figure out what you’re doing and start to limit the amount you can bet. And the lines change so quickly now where its harder to find those opportunities.
Not sure how they were doing 8 million a year with any system without getting banned or limited on all the sites. I wasn’t close to those numbers and was feeling the pain from them.
Bill, shoot me an email if you would please at troram78 at yahoo ? I could learn something from you and I have a play you might find useful!
This guy actually understands how it works.
One thing to also mention is the VIP programs you can attain by low holding/arbitrage.
The status and benefits can be more profitable than the arbitrage bets you made to achieve the status.
Make money while u make money to make more money 😉
Can you give some examples of these benefits that you get?
you must of had a credit limit of 100k to make 80k a year from this method.
Or kept cycling CL which is usually a no-no
been cycling through discover cards several times a month on P1 and P2 cards for years with no issue
What are the other issuers?
nooooooooooo
RIP GMS
i blame capone for this
yes already
no not serious
…only 60% serious
lol for a minute I thought you meant the OG mafia AL
What is GMS?
Gambling Manufactured Spend
It’s an acronym I made up this morning