Frequent travelers who like to play casinos while away will have to be wary of using Paypal from next month onwards. Starting on the 25th June, PayPal will stop protecting payments made on gambling platforms across several territories. The most significant of these territories include Canada, Brazil and the USA.
PayPal have defined gambling purchases as “gambling, gaming and/or any other activity with an entry fee and a prize”. Any gambling transaction will be added to PayPal's ineligible items list. This will cause changes to their Payment Protection Policy and User Agreement, which will affect buyer and seller protection, and limit dispute resolution.
PayPal Limiting International Payment Protection
Gambling isn't the only product taking a hit when it comes to payment protection. Payments to crowdfunding schemes and payments to government agencies are having similar restrictions placed on them.
PayPal have defended the recent changes as a way to make it clear to consumers that there are simply some cases where they can't do anything about their money. A recent BBC report had PayPal claiming that their user agreement changes are “consistent with the risks and uncertainties involved” as all of the unprotected transactions types “do not guarantee a return for the investment made”.
PayPal's presence on online casinos has dropped both internationally and somewhat in the UK ever since the company merged with eBay. eBay has been much more cautious about having its payment platform used for gambling.
UK PayPal User Warning
It looks like bad news for international players, or UK players who like to use PayPal as a secure payment method when overseas. It's unknown whether these changes will make it to the UK, although we assume it's only a matter of time.
If and when PayPal decide to adopt a similar payment protection policy worldwide, it will be interesting to see how this affects the adoption of PayPal as a payment option at online casinos, especially given that alternatives like Skrill and Neteller have not announced any plans to follow suit.