Wednesday 11. May, 2016

PayPal to Stop Gambling Protection in a Number of Countries

Online payment system, PayPal, has announced changes to its Payment Protection Policy and User Agreement that will impact those who use this as a payment method for online gambling. The changes will affect users in a number of countries, including the US, Canada and Brazil.

PayPal will no longer provide payment protection for any payments accrued from crowd-funding platforms, as well as payments made for gambling, gaming or any activities that include an entry fee and a prize.

These changes are most likely due to the growing strength of crowdsourcing in additional countries, bringing new customers along. Due to the high rates of failure of these crowdsourcing ventures, more people are attempting to get their money back when things go wrong.

Until now, PayPal Holdings would cover any bill for a payment made or a purchase that did not turn out as expected. They will also cover all costs if a customer receives a final products that is not according to the specifications of the product. However, these changes will end this protection from PayPal for those choosing PayPal as a payment method at online casinos, poker rooms or other gambling sites.

“This is consistent with the risks and uncertainties involved in contributing to crowdfunding campaigns, which do not guarantee a return for the investment made in these types of campaigns,” said a spokesperson for PayPal, according to the BBC.

The changes will come into effect as of June 25, 2016. PayPal has stated that all users need to be aware of all the implications of the changes and if they are not happy with the new policy, they can close their accounts. Those players at online gaming sites need to be aware of these changes if they are residents in included countries.


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