The term “e-wallet” hadn’t even been invented at the time when PayPal first appeared on the screen, but few would argue that the service perfectly fits the modern-day definition of an e-wallet service and company. At the same time, PayPal has several notable differences in its profit and revenue models, business’s structure, and services offered which make it stand out amongst competitor e-wallets from the likes of Skrill and Neteller. One such service to take advantage of is to deposit and withdraw at an online casino through PayPal, and as well as learning more about this specific payment method in our article, you'll also find a list of the best PayPal Casinos to play at online.
paypal The original e-wallet: Is it still the best?
Ask a hundred people what the first word they associate with “PayPal” is, and you’re likely to get a dozen different answers. Elon Musk will probably feature in there, along with eBay, and possibly a few curse words about their (sometimes) extremely high fees and love of favouring the buyer in every possible scenario - no matter how ridiculous.
PayPal has had a complicated relationship with gambling over the years; after the company was first formed during the late 1990s, online gambling was a major money-spinner for the fledgling payments service. The rapidly expanding online auction house eBay was looking for a faster, cheaper, and more reliable way of processing payments for its customers between 2000-2001, and PayPal soon become the front-runner as a potential acquisition target for the company.
Over in England, another fledgling business was watching these developments closely; called Moneybookers at the time, the British business which later became Skrill knew that if eBay purchased PayPal, there would be no more PayPal gambling transactions. This was clear due to increasing pressures from the US legal system and a $10 million lawsuit the previous year.
As soon as the eBay deal completed, MoneyBookers switched their focus entirely to online gambling, making hundreds of millions of dollars over the next decade and completing numerous acquisitions of their own, eventually culminating in their purchase of Neteller and the formation of the larger Paysafe group. Towards the end of the 2000s, Skrill was beginning to branch out from online gambling, subsequently pushing PayPal back towards the industry.
In 2009, the US market was now firmly in the grip of the Federal Governments Unlawful Internet Gambling Enforcement Act. PayPal felt it would be safe to begin offering gambling transactions again in the United Kingdom, where processing gambling related payments was fully legal and regulated.
PayPal only signed up the largest of the major UK licensed operators to begin with, but over time the company softened their stance and is now a common payment option at most casinos that hold licenses from the UK Gambling Commission, Malta Gaming Authority, and similarly high-profile, trustworthy regulatory bodies.
depositing using paypal
Opening a PayPal account is usually quite straightforward, provided you are fully registered at your address in your country of residence. The company uses several methods to verify identity without needing to ask for documents, much as many casinos do now (although Paypal, unlike the casinos, won’t suddenly demand them anyway when you win!). If the company does have any issues verifying who you are, this can often be rectified by adding your current bank account ore debit card to the platform – something you were very likely to have to do anyway. In the rare case that PayPal cannot complete KYC without documents from you, you’ll need a Passport, National Identity Card, or Driver’s License, along with a recent utility bill.
You can add funds to your PayPal account manually if you wish before depositing at a casino, poker room, or sportsbook, and this is advised if you wish to hide the destination of the funds from your bank. The reason for this is that a deposit to PayPal will simply show on your bank statement as “PayPal”, whereas using the PayPal deposit option at a casino will instead show (for example “PayPal demoslot.com Casinos”.
If you aren’t fussed about your bank knowing what you are up to, then you can simply choose the PayPal option whilst making a deposit at your favourite online gambling site. If the balance iny our PayPal account is insufficient – or empty – you will be asked to choose a payment method to finance the transaction. Many jurisdictions have outlawed credit card payments for gambling transactions, something which PayPal honours in such jurisdictions, so depending on your local laws you will be offered the chance to add a debit, or potentially credit, card to complete your payment.
PayPal deposits appear in your online casino account instantly, though if it is your first deposit at this particular online casino you should check the terms and conditions before depositing to ensure that PayPal is a valid payment method for receiving their new player promotions or bonuses.
withdrawing using paypal
Most online casinos now work on either a “first in, first out” payment scheme, or a “total balance” system which means you must have made deposits equal in value to the amount you wish to withdraw before the transaction will be permitted for transfer to PayPal. The “first in, first out” scheme simply means that you must withdraw back to the same payment method that you used to make your last deposit.
Withdrawals to PayPal are usually extremely fast – many of my favourite online casinos send PayPal withdrawals instantly the moment you hit the button, whilst a handful of others have a short delay of between 1-30 minutes before the funds will appear in your PayPal account.
PayPal used to offer a debit card which was linked directly to your PayPal balance, and I understand that this facility is still available in some countries around the world such as the United States. In my own country, no such debit card is currently available. It isn’t really necessary though, because free and instant bank withdrawals can be made allowing you to begin spending your winnings just minutes after hitting big on the slots, blackjack table, sportsbook, or whatever your chosen mode of gambling might be.
If your favourite casino does not offer immediate or same day PayPal withdrawals, you should ask them why. There is no good reason for having to wait several days to receive your money, especially if you are a fully verified player with a good background at the casino. If enough people hassle them, eventually they may change their ways!
information about e-wallets
The term e-wallet is often used as a catch-all these days to describe any type of service which permits the sending and receiving of funds between both individuals and businesses. An excellent example of a very different type of service that is often described as being an e-wallet would be the seemingly endless number of apps and websites which hold (and often also sell) various cryptocurrencies.
When we talk about e-wallets in this article we are describing services which are designed to facilitate the transfer of regular, country-specific legal tender such as Pounds Sterling, Euros, or U.S. Dollars. PayPal is one of the largest and most well-known such services operating on the web today, but they are certainly not the biggest e-wallet company in terms of gambling revenue.
Companies such as Neteller and Skrill who focused their businesses on gambling from the very beginning have been able to forge enviable partnerships with casinos, sportsbooks, and online poker rooms that can make using their services very attractive for regular bettors. It isn’t all bad news for PayPal, however – the company has always been much stricter with regards to their “Know Your Customer” rules than other e-wallets, so are usually exempted from rules which prevent depositors using Skrill or Neteller from claiming certain kinds of promotions.
So, why use an e-wallet when gambling online? Many bettors do not like their bank knowing that they enjoy a little flutter now and again, as there is some evidence to suggest that this information is viewed negatively by the banks. By depositing into an e-wallet and then making your gambling deposits from there, your bank no longer has any knowledge of what you are doing with the money after it is transferred to an e-wallet company such as PayPal.
Furthermore, withdrawals from online gambling sites to e-wallets are often much faster than alternative methods such as bank transfers or debit card refunds. Many online gambling companies process e-wallet transactions faster than regular banking transactions as the fees for making these payments are lower, which incentivizes their customers to use e-wallets rather than traditional banking payment services.
PayPal was well known for many years as the primary payment service for customers of the online auction house eBay. That arrangement has now finished, but PayPal is still widely accepted by online merchants both large and small for purchasing goods. PayPal also offers a “Friends and Family” payment service which allows funds to be transferred between personal acquaintances with no fees. This is especially useful when money needs to be transferred between people in different countries, who may otherwise have to pay very high international bank transfer fees.
PayPal: Frequently Asked Questions (FAQ)
Can I trust PayPal with my card and bank details?
Absolutely. PayPal encrypts all of the financial data they hold on their customers, and the business itself is so huge and so heavily regulated that there is simply no chance whatsoever of being conned or ripped off just for using PayPal as a method of getting money in and out of online caisnos.
Things were a little bit different back in the eBay payment days – it wasn’t unusual for funds to get locked up for long periods of time if you had suffered any issues on eBay in the past. Thankfully, those dark days are gone. There is aways a danger that any large company holding financial details will be hacked, but PayPal has not suffered a breach in their almost 25 year history, indicating they probably have more than a few “white hat” hackers on their side looking for, and plugging any leaks before the bad guys have a chance to use them.
What if there is a problem with my PayPal deposit or withdrawal?
Problems with PayPal deposits are rare, although there have been occasions when funds sent from PayPal have not shown up in a players account immediately. This is usually rectified within a few hours at the very most, and there are no known cases of any player losing money in this way.
Withdrawals can be a little bit trickier – it is the online gambling site who you need to deal with in this case, and some of them have better support than others. This isn’t PayPal’s fault however and there really is nothing that they can do about this. Still, if a casino claims to have sent money to your PayPal account and PayPal say that they have not received anything, ask the casino for a screenshot to prove the transfer was made and show this to PayPal – they will do their best to help you out.
If Skrill is the bigger e-wallet company, should I use them or PayPal?
It can depend on a lot of different reasons. As mentioned earlier in this article, Skrill does have several exclusive partnerships with many online casinos, poker rooms, and sportsbooks, and there are sometimes incentives offered if you choose to pay with Skrill at the companies who are part of these deals.
Take that part away, however, and PayPal has much better support, does not charge fees for bank withdrawals – something which can be a problem for people in some jurisdictions, where Skrill’s fees are outrageously high – and is usually not excluded from first deposit bonus offers in the same way that Skrill is.
I should mention that Skrill offers a debit card that allows you to circumvent the bank withdrawal issue if you fancy signing up for it but be prepared to pay €20.00 per year for privilege.
Can I deposit using my bank account and then withdraw to PayPal?
As mentioned earlier in this article, this is usually not permitted except in exceptional circumstances, for example, all the previous payment methods which you have on file are no longer operational. It did used to be possible to make transactions in this way several years ago, but criminals found out about this and began using it as a kind of loophole to assist in their illegal money laundering endeavours.
This is a great shame as there is often no way to get money from one type of e-wallet to another without paying outrageous fees for, say, buying Bitcoin with one e-wallet (such as PayPal) and then selling your Bitcoin back to a different e-wallet (such as Skrill).