PayPal, the world’s most popular and well known online payment processor, announced that it will soon cease protecting payments to online gambling websites in America, most specifically in the United States, Canada and Brazil.
The third party payment platform issued a statement where it referred to the specific changes it is going to make to the terms and conditions in the User Agreement and Payment Protection Policy which would affect buyer and seller protection and dispute resolution.
The statement reads that PayPal will include gambling and gaming activities on the list of ineligible items for protection as of June 25, 2016. In addition to the gambling activities, other items that also won’t receive protection are payments made to a government body and crowd-funding platforms.
After Black Friday, PayPal returned in the American online gambling scene in 2015 when it signed a deal with WSOP.com to provide payment and cashout services through its online entities based in Nevada and New Jersey.
PayPal told CNBC that the partnership deals with the real money gambling operators was part of their pilot program to offer their customers a way of funding their accounts. Back in the day PayPal was one of the biggest payment processors on the web in the US, but in 2003 that changed when it merged with eBay.
Besides the licensed online poker website in Nevada, the payment company also processes money for businesses that deal with daily fantasy sports. At the beginning of this year online giant Yahoo removed credit card payments for its DFS platform but it still continues to accept daily fantasy sports deposits via this virtual online payment service.