PayPal Re-enters US Online Gambling Market

PayPal Re-enters US Online Gambling Market Though not official, word is PayPal will be jumping back into the online gambling circuit as a banking method option for US. It has been 12 years since the giant processor pulled out of the US due to legalities of processing deposits at online Casinos, Poker and Sportsbooks. It is the result of enforced regulations and its merger with eBay in 2003.

PayPal isn’t exactly broadcasting it, preferring to keep it on the down-low for now. The leak came when iGaming Business first reported it. There are currently two websites that have added the payments company to their banking options including WSOP and Derby Games. The company is otherwise a popular choice for international online gaming sites.

The big question is why the hush-hush secrecy? According to Andy Frankenberger, World Poker champion:

"My thinking is PayPal may not want attention is because there is a perception that online gaming is a gray area.”

"If you're not legal in all 50 states, then it's not black and white—even daily fantasy." For now, online gambling is legal in only a couple of states, and daily fantasy is legal in most—but not all 50 states.

"Perhaps PayPal doesn't want to jeopardize their market status in states that oppose online gaming.”

Frankenberger also added how he understood why PayPal would do it:

"There is huge upside if online gaming would be allowed in some of the larger states, like California and New York. Right now it's a fraction of what it could be. To the extent PayPal can participate, it would seem to be a great opportunity."

The company said in a statement given to CNBC:

"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.

“We are launching this pilot now that we are able to fully comply with the evolving laws surrounding RMG in the United States 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."

Before a merchant can add the processor it must be approved by PayPal as it specifies it bans all online gaming unless approved by the merchant.

  • I was pleasantly surprised when the main casino I do most of my depositing with all of a sudden popped up with PayPal as a funding method. I had previously had to transfer money from PP to a prepaid card or my bank account in order to play and that usually takes like 3-4 business days. Now I don't have to wait. Now if the other two that I deposit with would do the same thing, that would be great
  • I think its great news and cant wait to see where this goes. They know there is money to be made . They aren't making any waves and want to keep it on the low as they said right now their are a lot of gray areas. Paypal being cautious is a good thing. I would love to see more casinos accepting paypal there are a well trusted and respected company . Im sure many as myself already use them for a variety of things so would just make it even more handy.
  • Paypal coming back into the fray hints at what the US market for online gambling has the potential to blossom into. The fact that they want to keep it quiet for now shows that there are still political factions against legalization that would use paypal's partiicipation to smear paypal and to campaign in opposition to the gambling prohibition's end.
  • It is good if paypal is entering, however i am weary. I remember using paypal for paste and pay and i had a credit card that ending same four digits as a bank account. i cancelled the bank account as my main funding source a while ago. When i used paypal to fund paste and pay. it paid them twice 150 and twice 100. I didn't catch it. Paste and pay refunded the extra money but then i started getting letters from the bank and paypal about activity on the closed account. If funding is instant should the charged been denied on a closed account. But paypal went in and got funds. Afterwards, all the people who i sent money too, paypal went to their account and took money saying i owed them. It was the weirdest action i had ever seen. I should of kept emails that they did this. It was unbelievable. Not only that, but they then declined me a prepaid pay pald card before all this happened. how can you get declined for a prepaid product. i know i will not be using them because i do not trust them. The way the last transaction was handled was out of this world. I hope trustworthy, friendly, processing sites become more available for u.s. casino players to fund their u.s. casino accounts. I know this story sounds like it is not true, but i assure every words is true.
  • thats great news cause i basically use paypal for everything and now that its gonna be a banking method for US casinos its the just awesome ive been waiting for this for a long time and i knew one day it was bound to happen the future looks great for the online gambling community hopefully one day online gambling will be legal i cant wait for that day.
  • Yes, I use a site where I am able to deposit via PayPal now, though they keep it on the down low and do so as a giftcard. Smart! I love it!
  • This would be wonderful if they were able to get fully back into it!! PayPal was wonderful, dependable, trustworthy, transparent and timely in their gambling transactions before the "now fallen hypocritical Eliot Spitzer, AG NYS", put them out of the online gambling biz and fined them a huge amount of money. Many, many of us were distraught at losing them as a funding source.
  • I think any additional options for consumers is a wonderful thing! It is frustrating that we are so limited in the U.S. in terms of casinos/payment options. Particularly, the ability to withdraw funds electronically. I envy the Euro players who receive their withdrawal in just a few hours. Oh that would be so awesome! Anyhow, I clicked this story with enthusiasm because I love Elon Musk and everything he does! Space X, Tesla, PayPal, Burning Man... Very happy that eBay is no longer in the equation! Sky is the limit, Mr. Musk!
  • Paypal seems to be against bitcoins as well, my account was temporarily suspended due to purchases I had made from and I was forced to make up ulterior reasons for having made these payments before they would restore it to full accessibility. My question is, if it's not illegal, what business it it of Paypal, or any other financial institution, to tell me what I can and can't spend my money on???
  • This is no surprise, no way no how. This is PayPal giving the credit cards that are providing legal online US casinos an alternate payment method, what for........ IMO, PayPal is not making a big deal of this right now because they do not want the other US players that are playing at sites online, but outside the US to attempt to use their PayPal account. That was illegal and is still illegal.

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