Online Casino News and Gambling News

October 6, 2009 - PayPal Payment Method for UK Online Gamblers

PayPal was amongst many companies who discontinued providing its payment processing services to the online gambling industry in the US and was, in fact, stopped from doing so by its parent company, eBay.

However, the company has signed a deal and has once again returned to the online gambling market. In terms of the deal PayPal will become a payment service provider for Neovia Financial, a very prominent merchant in the UK online gambling industry.

Although PayPay will not yet process payments from US customers it appears to be preparing itself in case the UIGEA is repealed in the US. Meanwhile it will process payments in jurisdictions where Internet gambling is regulated.

A few years ago it was obvious that PayPal tried to move away from online casino gambling altogether but this new deal with Neovia shows that they are preparing to re-enter the online gambling industry.

At present payment processors are reluctant to accept online gambling transactions in the US as their government has already seized many bank accounts relating to online gambling payouts.

PayPal will process payments for 32Red online casino as this casino does not accept US players. PayPal need, therefore, not be concerned with UIGEA problems.

PayPal has also been adopted as a payment method by many UK online bingo sites that are confident that PayPal will provide them with safe transactions without the necessity of releasing credit card or bank account numbers.

Hopefully the laws in the US may change with Representative Barney Frank’s proposed legislation which will probably be discussed early next year.

 

 

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