WSOP.com NV made a monumental announcement earlier this month when they revealed that online poker players could use PayPal to fund their accounts. Shortly after, WSOP NJ and 888 Poker NJ also started offering PayPal as a funding option for their customers.
The addition of PayPal as a payment provider for regulated online poker is a huge move and represents a major shift in policy for the popular e-wallet company. It is also a major coup for regulated online poker and gives it an added level of legitimacy that could help it expand in the future.
PayPal is Back in the Gambling Business? It’s About Time!
Online gambling and PayPal were like oil and water. The company not only banned the use of PayPal funds for online gambling but even the mere mention of online gambling or products related to it was grounds to have your account suspended.
For those who have worked in the poker industry over the last few years, we had to be careful not to mention poker or anything tied to gambling in fear that our main source for receiving payments would be cut out.
Online poker players using PayPal to move around funds had to be just as careful. I personally know of several instances where players weren’t thinking and sent someone money for “poker tournament fees” or “poker transfer” and found their accounts frozen and in many cases their funds lost.
Now PayPal is back in the gambling business, at least at a regulated level and players in New Jersey, Delaware and Nevada have one added tool to their arsenal. PayPal and regulated online poker are a great fit for each other and it makes sense that they started working with regulated websites.
If PayPal is Processing Funds – Regulated Poker Must Be Legit
Anyone that has used PayPal extensively knows how far the company will go in the name of security. Some of their payment protection policies can go overboard when protecting buyer rights. That’s another reason why their allowing regulated online poker sites to use them as a payment processor is a huge deal.
Simply stated, regulated online poker must be legitimate if PayPal is choosing to process payments for them. WSOP.com and 888 Poker will be subject to the same rules as any other seller that uses PayPal, including the six month term that buyers have to file a claim against them.
Adding PayPal as a payment process actually adds an additional level of security to player funds. Regulated online poker providers are required to segregate funds so they are available when players request those funds. Players that make a deposit via PayPal also have six months to file a claim against the company if they do not provide the services they paid for.
The fact that PayPal has agreed to serve as a payment provider could also help further the cause of iPoker regulation in other states. PayPal represents a trusted universal e-wallet that can be used throughout the United States. It helps answer the question on how players can get funds on and off sites in a safe and secure manner without having to go through various legal and procedural hoops that other providers may have.
I’m not saying that PayPal is going to be a deciding factor on whether a state passes online poker regulation but it could help ease the process and make lawmakers more receptive to the possibility.
PayPal is Excellent for Regulated Online Poker
Anyone that believes that PayPal isn’t great for regulated online poker fails to understand the potential of the product. We finally have a payment process that can quickly become the #1 third-party processor in the United States. It is a matter of time before Delaware Poker, Borgata Poker, partypoker NJ and Real Gaming jump on board the PayPal bandwagon.
As online poker regulation expands, regardless of its speed, PayPal should expand with it. Not everyone can make a deposit on a regulated site with their bank account. Many are not familiar with Skrill, NETELLER or other third-party payment providers and fewer are willing to go all the way to the casino to make a live deposit.
However, many of us reading this article own a PayPal account or have owned one in the past. They are easy to setup and can be linked to your bank account. This is an excellent workaround for banks that have yet to modify their policies for regulated online poker.
It even allows for peer-to-peer transfer of funds. Need $100 from your buddy to play the Nightly $10k? Get him to ship it to you on PayPal and you can fund your account immediately.
PayPal picked the perfect time to reenter the gambling market and regulated iGaming is the way to go for the company. They assume less risk and provide and extra layer of security to players wishing to play online. It is a match made in poker heaven and is +EV for regulated online poker.