All we know that PayPal is the major eWallet online and the one that is the most frequently used for all categories of transactions. It was founded in 1998 and in 2002 it was sold to eBay. Users can use over 100 different currencies and send or receive money from 200+ countries.
PayPal reentered the online gambling payment processing business in 2009. This started with an agreement with Betfair, the largest sports exchange on the internet. Paypal now processes payments for many online gambling companies. In addition to Betfair, 888, Paddy Power, BWIN, Ladbrokes, Bet365 and William Hill accept PayPal as a payment option.
Furthermore, the list of both is growing as we speak. When it comes to gambling, PayPal is an choice but with some limits. We will make known those exclusions below.
Here are transactions that PayPal will refuse to complete that are related to gambling online.
What are PayPal limitations in iGaming industry?
Where gambling is illegal
If you want to use PayPal to fund an account in a country or area where gambling is illegal you won’t be able to do it. You won’t be able to use PayPal at independent online casinos as well. The eWallet will refuse any transactions of this kind. On the other hand, you can use it where online gambling is legal.
The example we have here in the United States and the United Kingdom. For instance in the United States PayPal cannot be used for gambling. The platform will refuse any related transactions. But in the United Kingdom, you can use PayPal for gambling. You can deposit funds and withdraw your winnings and this works well, fast, and is secure. There is no need to add that the same rules apply to the whole world.
These rules and laws are changing on a regular basis. We can see already that many states, countries, and areas in the world are legalizing online gambling. This happens due to the massive popularity of this entertainment across the globe. What this means is that PayPal will become available in more and more countries in the world soon.
When player is on GamStop
This is an interesting option and the one we would like to discuss more. When you are on GamStop you won’t be able to place bets and gamble. All UKGC casinos and even some on MGA will bank your account and prohibit you from creating a new account. Many gamblers know this and start looking for non-GamStop Paypal casinos in the UK via NonGamStopBets which is extremely popular in the UK. But, they don’t know that PayPal will refuse any gambling-related transactions when you are on GamStop. Once the self-exclusion expires you can go back and use this payment method. Keep in consideration that it is possible for PayPal to keep your money on the account as long as self-exclusion lasts. Once done you can go back and withdraw the funds.
This is a huge deal for some players. They cannot use their favourite payment method while on GamStop. This is also one of the reasons why we can see PayPal only at licensed casinos and well-known brands. It is not a very common method at other casinos and the number of casinos accepting it is not growing rapidly as with other payment methods.
The goal here is simple and it is the same as with GamStop. The limit should discourage a player to gamble until he resolves his gambling issues. Once he has the time to do that, he will probably work on them and solve them eventually. When he is unable to gamble the whole process is much easier and more effective. There are fewer distractions and this does work well.
Unlicensed casinos online
You can see that PayPal will always be displayed in the footer of the casino where you can use this payment method. But, next to the logo you will see the log of the gambling authority. It can be MGA, UKGC, or some other. There are many iGaming authorities outside the UK that regulate the market. What this means is that you can use PayPal only at casinos that have a proper licence.
The real situation is a bit more interesting. PayPal has to approve the merchant, an online casino in this case scenario. What this means is that if they don’t approve that casinos, you can’t use PayPal there. The list of requirements, legal aspects and so much more is far from simple and we would need days to explain all of that. All you have to know is that an online casino must complete countless requirements in order to be able to accept PayPal as a payment method.
This is one of the reasons why some gamblers prefer PayPal and they have been using it for gambling specifically. It cooperates with super-safe online casinos only where there is no room for scamming or any related issues. Also, PayPal partners with GamBan and other responsible gambling tools. This doesn’t mean that casinos that don’t support them are unsafe. As a matter of fact, many casinos don’t want to cooperate with PayPal because there are too many requirements. Those casinos already offer many different payment methods hence they don’t need PayPal.
Final thoughts
PayPal is the biggest eWallet out there but not the most common in the world of gambling. It is popular at licensed UKGC casinos and some others.
- Suggested read: iGaming: why designing a casino game inspired by traditional video games is a winning idea?
Keep in mind that if you are trying to use this eWallet to fund your account or withdraw your winnings from the casino in either of these three cases your transaction will always be declined because many independent operators do not support it. There is no way around it so you will have to use a different payment method or even better wait for GamStop self-exclusion to expire.
now considering the rise of cryptocurrencies, PayPal needs to be more serious about iGaming if they don’t want to lose their portion in the market.
Paypal: iGaming – Leylaj
