Paypal to end protection for millions of gamblers

Paypal to end protection for millions of gamblers

Tuesday, May 10, 2016 Totally Gaming
The payment systems giant said gambling is considered "high risk" in several countries, including the US and Brazil

Paypal users in countries such as Australia, Brazil and the US will no longer be protected when they make online gambling transactions from next month.

The payments giant is updating its User Agreement from June 25, with changes encompassing buyer and seller protection and dispute resolution. Paypal’s updated list of ‘ineligible items’ for Purchase Protection will now include “gambling, gaming and/or any other activity with an entry fee and a prize”.

The changes, which will also affect crowdfunding platforms, will be applied in Australia, Brazil, Canada, Japan and the US – countries which have a total population of 715 million. PayPal, which has more than 150 million active registrants worldwide, will continue to offer gambling transactions in jurisdictions where iGaming is legal.

A Paypal spokesperson told that the company has taken the decision due to the “high risk” nature of the transactions.

“The User Agreement governs the terms of our relationship with our users, including our customers’ rights and obligations associated with PayPal’s products and services,” the spokesperson said. “We send notices to our account holders regularly to ensure we keep them informed of any changes to our agreements and related policies.

“In Australia, Brazil, Canada, Japan, United States and other countries, we will no longer provide purchase protections for payments related to games of chance including gaming, entry fees or prizes. This is to reflect the nature of these payments for services that have a high risk of not yielding a return for the payment.”

Last year, Paypal became a payment option for Caesars Entertainment subsidiaries Caesars Interactive Entertainment (CIE), CaesarsCasino, HarrahsCasino and WSOP as it returned to US gambling for the first time since exiting the market in 2002. says: "This is a strange move by Paypal, which seems happy to take money from customers but not give them the protection they would receive for other leisure pursuits. It is also badly timed for Brazilian consumers, with potentially millions of perfectly legal online transactions set to take place when new gambling legislation is passed later this year."


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