PayPal reveals new attitude to US gambling

PayPal reveals new attitude to US gambling

Tuesday, September 15, 2015 Totally Gaming
PayPal has launched a "pilot" with four real money gaming sites

Online payment processing giant PayPal has told TotallyGaming.com that it will look at the gambling industry only from a business and legal point of view after announcing a pilot launch in the US. 

The operator is now a payment option through Caesars Entertainment subsidiaries Caesars Interactive Entertainment (CIE), CaesarsCasino, HarrahsCasino and WSOP after receiving approval within Nevada, New Jersey and Delaware, where online gaming is legal.

PayPal, which has more than 150 million active registrants worldwide, exited the US gaming market just after it was acquired by online auction site eBay in 2002 and - in a move seen by many as a moral rather than legal or business decision - banned it even in jurisdictions where gambling was legal until 2010.

However, a PayPal spokesperson confirmed to TotallyGaming.com that it had returned to US gambling just two months after it became independent of eBay.

“PayPal is launching a pilot program to support four leading real money gaming (RMG) operators to offer PayPal as a way for gamers to fund their online accounts with these merchants,” said the spokesperson.

“We are launching this pilot now that we are able to fully comply with the evolving laws surrounding RMG in the US as well as the requirements of our payment partners.

“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.”

Online gaming operators are hopeful that PayPal’s entry could lead to greater ease of use for customers, with the problems of signing up to use a new payment wallet seen to be an obstruction for an industry that has only made gradual progress. PayPal has more than 50 million active users in the US. 

Approximately six per cent of PayPal’s 2002 revenues were derived from online gambling payment processing. Following its takeover, eBay settled with US government over charges that PayPal’s services to gambling merchants in 2001 and 2002 had violated the Patriot Act.

Prior to the recent change, PayPal’s terms and conditions stated that it would not accept gambling transactions in the US, despite online gaming being legal in three states.

The company’s terms previously read: “PayPal prohibits transactions for gambling activities by merchants and account holders in the US and any jurisdiction where gambling activities are illegal, and by merchants whose services are accessible to account holders in the US.

“PayPal allows approved gambling merchants to use our service in certain jurisdictions where gambling activities are legal.”
 

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