Due to the widespread acceptance of PayPal by both people and companies, many Internet users have had a PayPay account for a long time. Customers are protected from providing financial information to unidentified third parties. PayPal handles all credit card information. Several methods, including electronic checks, physical checks, and the PayPal debit card, can be used to make one’s withdrawals more secure.
This is the biggest platform for online payment processing and it has its history when it comes to online gaming. First, let’s look at the reasons why PayPal left in the first place and then see how the return of PayPal to the iGaming market through New Jersey worked out.
Why PayPal Left the iGaming Market
PayPal was one of the first eWallets to handle payments for US online casinos. As eBay acquired it, it all came to an end in 2002. A $10 million settlement was negotiated between PayPal and its new parent corporation, eBay, and the U.S. Attorney’s Office in the Southern District of New York to put the past of processing payments for offshore internet gambling behind the merged businesses.
This created a large gap in the US online gaming sector. Neteller and Firepay responded right away to the situation. Legal issues arose for each of these businesses in 2006 and 2007, respectively.
Even though PayPal was a separate business at the time of the alleged transactions, the merged companies were the subject of a federal investigation looking into its handling of payments for online gambling in 2002. A $10 million lawsuit settlement was reached between the corporation and the Eastern District of Missouri US Court. It was calculated that the sum would be equal to the profit PayPal earned over the two years that it handled payments for online gambling.
And now, gamers from all over the US can enjoy PayPal’s services. Finding a PayPal casino in PA or any other state where gaming thrives is not an issue anymore; pretty much everyone is using PayPal. But why did the company return to iGaming? And why did it take so long?
PayPal’s Return to iGaming
Up until 2009, PayPal kept out of the online betting industry. At that point, the business decided to resume processing payments for the online gaming sector. The distinction at that time was that the websites where PayPal conducted business in the industry were entirely compliant with local laws and were authorized to accept payments. This often meant that the only nation where PayPal was an option for online gaming deposits and withdrawals was the United Kingdom.
In the US, PayPal kept running its eBay and person-to-person businesses. Payment processing for established internet companies was operational as well. Some uses in the market of skill games were also legal.
The next significant PayPal move in the US was accepting fantasy sports payments. Although there is some disagreement about the precise number of jurisdictions where the competitions are permitted, it is estimated that up to 45 of them are covered by rules governing skill games. However, in all states where daily fantasy operators conduct business, PayPal handles deposits and withdrawals for virtually all services.
In July 2015, following its separation from eBay, PayPal became a stand-alone business once again. PayPal took the next step by returning to the online gaming market. Soon after, WSOP.com, Nevada, and New Jersey, together with 888, Harrah’s Casino, and Caesars Casino, began accepting payments for online poker and casinos through PayPal and Caesars Interactive Entertainment.
PayPal is still THE eWallet and it is unlikely to change anytime soon.