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The Return of PayPal Gambling Payments in the US

Sep 18, 2015

Paypal gambling payments USA

Paypal gambling payments are available again in America

PayPal gambling payments were approved on four US sites, following the company’s separation from eBay.

• The approval of PayPal gambling payments
• PayPal’s stormy online gambling history
• Parting from eBay, reuniting with casinos

During the past week, PayPal has silently returned to online gambling in the US. Numerous casino gambling news outlets reported about the online payment operator’s step, which is rather interesting considering their history. PayPal was always present on the EU gambling market, but since 2003 they were absent from US casinos. Preceded by some rumors from 2014, the banking company is now finally back to gambling in the States after parting from eBay. As stated by Fortune.com, payments by PayPal were approved in four online gaming destinations.

The policy to PayPal gambling payments in the US

According to a PayPal spokesperson, this is only “a pilot program to support four leading real money gaming operators.“ As put by their official policy “PayPal allows approved gambling merchants to use our service in certain jurisdictions where gambling activities are legal.” In order to win the company’s approval, the providers are obliged to prove that their services are blocked in the states where online gambling is illegal. PayPal prohibits any transaction through sites that don’t fit their particular requirements.

PayPal gambling payments available again in the US

PayPal’s headquarters in San Jose, California

Basically, it doesn’t matter whether the online or mobile casinos are already lawful, without the company’s authorization their players cannot use PayPal gambling payments for games of chance nor games of skill, casino games, sports books or sports betting, horse or greyhound racing, person-to-person betting, lottery tickets, gaming machines and gambling-related ventures.

PayPal’s tempestuous history with online gambling

After ebay’s merger with PayPal in 2002, all payments for items and services intended towards Mature Audiences were forbidden, including online gambling. The ban was justified by PayPal stating that the “management feels that exiting the adult business with a clear and consistent policy is the best decision for its business.” We should keep in mind that back then, PayPal gambling payments were really popular among online casino players so the sudden backtracking prompted a collective gasp within the community.

PayPal gambling payments eBay

After 12 years of cooperation eBay and PayPal split again in 2014

PayPal’s retreat was heavily influenced by the allegations of the U.S. Attorney for the Eastern District of Missouri. Accordingly, the online payment operator has violated the USA Patriot Act. The fine assessed was PayPal’s total online gambling revenue from a nine month period between 2001 to 2002. ebay declined to pay the fine stating that “PayPal calculates that the amount of its earnings from online gaming activities was less than asserted [by the Attorney].” Nevertheless, some months later, the companies agreed to pay $10 million to settle the charges.

The new PayPal is back to gambling

In 2014, eBay announced that after more than 12 years they’ll separate from PayPal, stating that “keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively.” PayPal received a new CEO, Dan Schulman who previously appointed as the leader of American Express’ Enterprise Growth Group. Comes naturally, that the parting has something to do with PayPal’s return to US online gambling.

“As a global payments provider, PayPal’s goal is to give people safe and simple ways to pay for the things they want, so long as we can comply with applicable laws,” commented PayPal to CNBC. Comes naturally, that the parting has something to do with PayPal’s return to US online gambling. The statement may possibly imply that PayPal gambling payments will be soon back to most legal online casino sites.


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