PayPal Is Entering the United States Regulated Online Gaming Market
PayPal has been approved by gaming regulators in Nevada, while it is entering the New Jersey and Delaware online gambling sectors. Both are expected to give their approval to the US-based payment service, which should provide a much-needed boost to the New Jersey online gaming industry.
The processing of payments has been a major issue for New Jersey gamblers. VISA is approved only 44% of the time it is used by gamblers, while MasterCard is approved at a 73% rate. Both are networks including tens of thousands of local banks, so the decision to accept or decline a gambling-related transaction is left to the individual financial institution. Many banks want to stay away from gaming-related ventures altogether, a trend which continued even after new gaming codes were implemented to help with acceptance.
Declined Payments a Big Issue
Due to their credit cards declining, many potential New Jersey gamblers have turned away from online casinos and poker rooms. Some people prefer to use one payment method. Even those willing to use something besides a credit card are not likely to register a new payment service account for that purpose, so being able to use a common service like PayPal is a boon. Also, when a website’s credit card transactions decline, that often puts the fear into a customer that the site is not trustworthy. When they see PayPal is accepted, that adds reassurance to the gambler. Thus, having Ebay’s preferred method of payment is key to growing the iGaming market.
WSOP online, Caesars, and Harrah’s expect to use PayPal in New Jersey. Caesars Online is already doing so in the Delaware gaming market. All three gaming portals believe the inclusion of PayPal will increase player traffic.
888 Holding Not Using PayPal Yet
888.com has not yet begun to use PayPal, perhaps because the site is paying startup costs to enter the Nevada online gaming market. It is expected the 888 Holdings sites, which are associated with WSOP in the New Jersey gaming market, will eventually offer the same product.
It is a far cry from the time when PayPal was not accepted in U.S. gaming. During the time after the UIGEA, most of the publicly-traded payment services and web wallets left the United States market. According to some accounts, even mentioning gaming in the comments section of PayPal would leave one with a flagged account.
Reasons for Optimism
New Jersey players were ecstatic to hear the news. The online community predicted the Garden State’s online gaming community would grow significantly with the inclusion.
One additional reason the entry of PayPal might help the Internet gaming market is the signal this sends to web wallets and e-vouchers. If U.S. online gambing in regulated markets is safe for PayPal, then it must be safe for everyone.
Pay Near Me at 7-Eleven
New Jersey gamblers have another option which is seldom discussed: Pay Near Me. The PayNearMe payment service is done through any participating 7-Eleven convenience store. These outlets let a person pay through at the local convenience store into their online gambling account. When they return to their computer, the funds are in the account.
Other options are Bank Transfer (ACH), Visa Credit and Debit, MasterCard Credit, Neteller, Online Banking Transfer, and cash (through the bank cage at one of the Atlantic City casinos). These do not represent the full range of payment options available to UK and European players at online casinos, but they are enough that most gamblers should have a method of payment.
As of 2015, PayPal has 159 million active registrants and operates in 203 countries worldwide. From 2002 until 2015, PayPal was a subsidiary of Ebay, the world’s largest online auction site. During those years (and still), Ebay pushed vendors and customers to use their PayPal accounts for auctions, which greatly helped PayPal become a mainstream American service.
In July 2015, PayPal was spun-off from Ebay, due to influence of activist investor Carl Icahn. The site’s President and CEO is Dan Schulman, while its chairman is ex-eBay CEO, John Donahoe.
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