For the ones who are not yet aware of the concept of an e-wallet, it is a digital wallet-like online service that enables the chance to make payments online by using digital currency units. It can either be done by linking one’s bank account to the digital wallet or depositing money into the wallet before making any transaction possible. This payment method is extremely easy to use and efficient in safeguarding a payment from being fraudulent due to the repeated authentication checks of the payer’s credentials. Digital wallets are accepted all over the globe by consumers and service providers and are only getting more recognition with time. PayPal, Skrill, Neteller, and other cryptocurrency wallets are the most widely used options among all other options.
When it comes to gambling, punters trying to complete a transaction using an e-wallet will mostly reach out to PayPal. This is not only because it is one of the leading payment gateways among all other digital wallet options but also because it has been in operation since 1998, which made PayPal the most trusted brand among all 200 countries where they are operating. The safety measures levied upon these transactions at PayPal include a prohibition of money transfers in certain countries where the risk comes complementary that is important for business. In addition, PayPal has also come up with the idea to restrict transactions related to gambling in places where gambling is considered illegal. This includes the states in America where gambling is not considered lawful.
History of PayPal
PayPal was first established by Confinity, a company dedicated to developing security software. In 2000 the company merged with X.com, and Musk became the CEO and Bill Harris. PayPal’s IPO was at $13 per share, and in 2002 it generated over $61 million, which now has a price of $70 per share in 2021. In January 2021, PayPal became the first operator of foreign origin with full control over its platform in China.
Payments by Players Under Self Exclusion
PayPal took a strict initiative to restrict all the players from completing any transaction under self-exclusion. There is no doubt behind the fact that any recognized authority will hold players under any self-exclusion program back from entering the casino site registered under it. This step taken by PayPal complies with the agenda of curbing problematic gambling. People restricted under GamStop will not be given access to PayPal casinos. According to the CasinoGap.org report, punters are still looking for non-GamStop PayPal casinos in the UK. In addition to that, for people restricted under GamStop, there is a rule that they will be excluded from receiving any promotional messages or advertisements related to gambling.
Transactions that PayPal accredits
In jurisdictions where online gambling is prohibited, PayPal does not allow any transaction by account holders or service providers. Like in the United States, when most areas prohibit gambling activities and consider it illegal, PayPal deliberately imposes restrictions on people trying to carry out such transactions. This restriction is not limited to US citizens but is also imposed on operators not based in the USA but are accessed by US punters.
Transactions are only allowed to merchants based in places where gambling activities are legal. These merchants have to present documents regarding how they successfully block punters belonging to places where gambling activities are illegal to get approved by PayPal.
As a result, it is always advised that punters trying to use PayPal first make sure if the jurisdiction they belong to legalizes online gambling and if the operator at which a player is playing allows transactions through PayPal.
Transaction between a Player and an Unlicensed Operator
Punters are usually discouraged from making payments to unlicensed operators for their own good as they are most likely to be fraudulent. It is one of the major factors to look out for before selecting a casino to play at. To safeguard players from being looted by inauthentic gambling websites, PayPal is not available at non GamStop operators and prohibits transactions between an unlicensed operator and a player. As a result, even if a person tries to play with these fraudulent websites, they are held from making payments using PayPal. Without any approval from PayPal, transactions between casino merchants and punters cannot be possible for any gambling activity.
To fight a major cause like gambling problems among the population, the single-handed efforts of the government are not enough. Major organizations like PayPal, which successfully hold the position to create a positive effect in society, can intervene and be socially responsible and make a major change among the population.