Paypal gambling deposits
PAYPAL is widely used in the gambling industry to fund online accounts, with the payment processing giant operating in most regulated markets.
As a listed company with plenty to lose, Paypal will not process payments to offshore online casinos, meaning if your country has strict gambling laws and has banned online casinos, you will not be able to use this method.
Paypal is widely used in the United Kingdom, Canada, Denmark and Sweden for online casino deposits, with many other countries also having access to this payment method. Countries who notably can’t use Paypal for casino deposits include the USA (although states are already introducing it), Australia and China.
Best casinos with Paypal deposits
As we have previously mentioned, Paypal cannot be used everywhere, so some online casinos might still offer it as an option even though you cannot use it — it will all depend on your local laws. The following online casinos all offer Paypal as a payment method.
How to deposit with Paypal
Once you have determined you are eligible to make gambling deposits with Paypal, it is a very easy process to deposit real money.
1: You need to be an account holder with Paypal. You can create an account right here on the Paypal website. It is free and only a five-minute process, although you may have to supply some documents to prove your identity at a later date.
2: You need to fund your Paypal account, which can be done by linking a credit or debit card to your Paypal account or through various other methods.
3: Once you have an active Paypal account, you visit the banking section of the online casino you wish to deposit at.
4: Select Paypal as your method.
5: Enter in how much you want to deposit and continue to your Paypal account, where you may have to log in if you are not already. After you are inside your Paypal account you will be prompted to approve the payment, which will be displayed in the currency of your account, even if your casino deposit was made in another currency.
6: After approving your casino deposit with Paypal, you will most likely be kicked back to the casino after a confirmation screen. If not, visit the casino page and refresh it. You should now see your balance updated to reflect your deposit.
Funding a Paypal web wallet
Paypal, as one of the biggest payment processors in the world, has several different ways you can fund your account.
These include obvious methods such as credit and debit cards. It is possible to link your card, so when you buy something online with Paypal it just debits your card.
It is also possible to transfer money between a linked bank account and your Paypal account, although this is not an instant method.
Paypal Cash allows you to deposit into your Paypal account from a local retailer. This works by visiting the Paypal website and finding a retailer that accepts payments. Paypal will then give you a digital barcode to present to the retailer where you can deposit your money. There is usually a small fee to make these deposits.
Another option to fund your account is by applying for a Paypal Cash Card, which is only available in some countries. In short you have a card which is linked to your Paypal account, which allows you to deposit cash at various retail outlets.
Paypal gambling history
Paypal has a long and truly global history since being founded in 1998 as Confinity, by Elon Musk and friends in Pala Alto, California. The company quickly gained huge attention and was eventually sold to eBay in 2002 for $1.5 billion.
The company entered online gambling pretty much from its inception, with it widely used in the United States until 2002. Paypal, like many associated with online sports betting or casino, opted to forgo the US market with the uncertainty surrounding online gambling laws making the decision easy.
Despite the uncertainty in the USA after the withdrawal, Paypal continued to grow globally, although it was not until 2010 online casinos again began accepting Paypal payments from places such as the United Kingdom, Australia and Canada. The two first online casinos to officially begin accepting Paypal again were 32Red and Ladbrokes.
Growing regulatory requirements surrounding online casinos from about 2012 onwards has seen Paypal become a stickler for the rules, and only operate in countries with grey gambling laws or regulated industries.
As popular an online casino payment method as PayPal has become in the past 20 years, the company has had various changes, including being spun out of the eBay company and forming its own entity in 2005.
As for the European online gambling industry, which is becoming increasingly regulated as more countries follow the lead of Great Britain in liberating their gambling laws, Paypal is a behemoth, with most Malta Gaming Authority and United Kingdom Gambling Commission casinos having this payment method.
A storied history in the USA
Before the passing of US legislation banning online gambling (the UIGEA) in November of 2005, PayPal was being extensively used at online casinos.
To be more precise, it was actually three years before the UIGEA, shortly after PayPal was acquired by eBay in October, 2002, that the online payment processor announced it would cease facilitating deposits at internet betting sites (not just online casinos).
The very next year, PayPal disclosed in a filing with the US Securities and Exchange Commission that it was being investigated by the US Attorney’s Office, largely spearheaded by the US Attorney for the Eastern District of Missouri.
While PayPal claims it acted in good faith and did not violate the USA Patriot Act and antiquated Wire Wager Act, the company nonetheless reached a $10 million settlement agreement with the US Department of Justice.
The agreement was allegedly based on revenue earned directly from online gambling transactions in 2002, which PayPal said accounted for 6% of the company’s gross revenue that year.
Considering that eBay bought PayPal for $1.5 billion, 6% goes to show just how much online gambling business was actually being done with US residents in 2002. In many ways, the settlement with Paypal helped serve as a benchmark for the growth of the online gambling industry in America.
And even though PayPal dropped out of the gaming business, there was nothing stopping the continued growth of an industry that is now estimated to be worth $150 billion worldwide.
Other eWallets such as Neteller, picked up the slack, but just like PayPal, soon faced their own battles with the US government.
Paypal has finally re-entered the US gambling market in the wake of the updated PASPA ruling, with some sports betting sites and online casinos in New Jersey now accepting this method.