PayPal is among the most popular e-wallets players use in online casinos. However, not all know about its credit features. The system allows users to launch a credit line built into their accounts. This option works as a bank card, so borrowing the necessary money with suitable conditions is easy. However, as mentioned on the CasinoDepositPal website, PayPal completely prohibits gambling activities using the credit feature, and there are multiple reasons for such a solution. Unfortunately, an unpleasant situation led to such a company’s decision, so let’s see what happened.

Background for PayPal Credit in Gambling

It’s noteworthy that PayPal credit gambling in the UK wasn’t initially prohibited. Therefore, adrenaline lovers could use the borrowed money for playing, which had negative consequences. The thing is, the system had a significant lag: the bank wasn’t informed about the used money for 48 hours. This allowed gamblers to get insane sums on their credit accounts to spend them in online casinos without any delays. 

Some reached £150,000 and, of course, had no means to return the debt. No limits imposed by the payment system are usually a benefit for gamblers, but it’s not the case with credit cash. Such a gap in the payment method’s policy allowed compulsive players to increase their spending on casino games and appear in even bigger debt. Of course, this couldn’t but affect the overall gambling addiction rates: problem users actively spent money they didn’t own and couldn’t stop playing.

Changes in PayPal Policy

The company’s management mentioned they didn’t anticipate such consequences of using PayPal credit. PayPal was accused of allowing users to utilize credit funds legitimately: according to the system’s policy, players didn’t break any laws. The shocking truth made the payment provider review its principles and bring new restrictions to users. 

The company was deeply concerned about incidents of using PayPal Credit for gambling activities and players’ worsened conditions. Therefore, the system implemented new mechanisms, banning gambling activities in debt. Modern gamers can still use the payment system in online casinos and sportsbooks, and PayPal’s fast withdrawals from gambling sites are still a thing, but it’s only possible to deposit from a debit account. PayPal also copes with illegal operators, so the method can only be used in regions where gambling is not restricted.

Impact of UKGC Updated Regulations on PayPal’s Decision

Before 2020, the gambling regulator allowed credit card gambling, but the landscape entirely changed that year. The UK Gambling Commission, the main authority controlling the industry in the United Kingdom, initiated its new policy. It implies a ban on using borrowed money for risky activities. 

According to the UKGC reports, thousands of British players used credit cards to deposit their casino accounts. Such an approach often led to overspending and financial problems, as people lost lots of money and had no options to return their debts. The decision to restrict credit cards for gambling aimed to minimise risks and reduce the number of gambling-addicted individuals. The latter point is essential: many players are unable to control their expenses on the chosen platform, while the possibility of borrowing cash gives more freedom. 

The ban on credit card gambling brought the desired results. The addiction rate reached 0.7% in 2019, which alerted operators and responsible bodies. The improved UKGC policy reduced this figure to 0.2% in March 2022, which is considered a significant improvement.

Further PayPal Influence on the Gambling Market

Despite the unpleasant situation with PayPal Credit services for gamblers, the payment system managed to remain among the most popular e-wallets for online casino deposits and withdrawals. Currently, players cannot use the credit cash to fund their accounts. However, PayPal is still a worthy alternative for debit cards and many other payment options. The main benefits for casino members include: 

  • Enhanced security
  • Global accessibility
  • No transaction fees
  • Possibility of low deposits
  • High withdrawal limits
  • Quick money transfers

Restrictions on using PayPal Credit services for gambling didn’t make players avoid the payment system, so its popularity grows daily. Many online casinos and sportsbooks offer special promotions to members using this banking option. Therefore, the gambling landscape has become more beneficial for players; they can enjoy additional rewards but minimize risks. Of course, it’s still critical to remember responsible gambling principles and stick to them when using PayPal for gambling.

Final Insight

Recent changes in the PayPal policy aim to increase overall well-being and motivate the fans of casino games and sports betting to gamble responsibly. The company overcame the crisis and remains a reliable and trustworthy payment option in the casino industry and beyond. Restricting gambling with PayPal Credit was the best way to decrease the overall population's well-being and reduce the number of addicts. The payment provider couldn’t but support the UKGC initiative, which brought positive results to the iGaming community in the country.


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