PayPal New Customer Protection Changes Scheduled For June 25th

In mid-May, PayPal sent out an email to all of its account holders informing them that it had made changes to its terms and conditions. A link was provided for people to go online and see what was new, but it’s likely that most people deleted the message without a second thought. Online gamblers who did so might end up finding themselves disappointed in the future, as on the surface it seems that the updated policy could make it harder for them to take action if they are ever cheated by an online casino or poker site.
Gamblers Are No Longer Protected
One of the reasons why many people prefer to use PayPal over other payment services, or for simply entering their credit card information to be processed by a website, is because PayPal offers transaction protection. If a user isn’t satisfied with the product or service or never receives the item that they paid for, they can file a claim with PayPal in an attempt to get the matter resolved and their money returned to them.
With the new changes to the PayPal terms of service,transactions that involve gambling, gaming or any other activity that requires payment of an entry fee for a chance to win a prize will no longer be covered by PayPal’s protection. The change will affect people in the U.S. and Canada, as well as those in Japan, Brazil and other countries. In the email, PayPal stated that the changes will go into effect on June 25.
The Ongoing PayPal Saga
PayPal has had an on again, off again relationship with online gambling since its founding. Up until 2003, PayPal was the number one payment provider for the entire global online gambling industry; however, eBay ended up blocking gambling transactions from being processed by the site when they bought PayPal in 2003. For the next seven years, no online gambling site could accept PayPal payment.
In 2010, PayPal reversed its ban on accepting online gaming transactions. The site changed its policy so that gambling transactions could be accepted from websites that were licensed in places where PayPal did business and where online gambling was allowed by law. Payment acceptance for iGaming sites subsequently rolled out slowly, and it wasn’t until 2015 that PayPal announced that it would accept online gambling transactions in Nevada and New Jersey.
The Impact of the Decision
While the PayPal decision may be a little alarming, the truth is that it is unlikely to have a big impact on actual players. In states where gambling is legal, gambling sites are run by well-known casinos that are required to maintain fair standards and are unlikely to try to steal money from players. Offshore gambling sites that are illegal in the U.S. are more likely to walk away with players’ money, and are unlikely to qualify for PayPal transactions.
The PayPal terms of service update does also remove protections for purchases related to crowdfunding and sending money to government agencies. It’s likely that these aspects of the changes will have more of an effect in the U.S.