|
Originally PayPal was the leader in alternative deposit methods for internet casinos. This lasted for years as they were relatively secure, had amazing customer service, low fees, and an easy sign-up procedure. Neteller was far behind PayPal originally in the volume of users, or at least it was in the internet casino I managed. However, where Neteller never had a charge back in the history of my time working with them, PayPal had a few. Then in 2002 PayPal was bought by eBay and announced that they would no longer allow depositing into internet casinos, poker rooms, sportsbooks, or any other internet gambling establishment. I couldn't understand how eBay would allow the loss of so much money by closing off internet gambling completely. Their reasons were because of federal enforcement activity, yet there are still US credit cards which allow internet casino deposits so that wasn't a totally valid statement. Nonetheless, this was the best thing that could have happened to Neteller, as many of the clients from PayPal switched and they stepped up to being the market leader in alternative deposit methods for internet gambling. PayPal has been off the alternative deposit method for internet gambling road for over three years now. The players which once swore by PayPal have found different methods for depositing and are now loyal to another brand. The internet gambling establishments which once would have done anything to keep PayPal as a deposit method have moved on to appreciate Neteller and their lack of charge backs. Where once they were the leader, PayPal is now a new player in the game. Undoubtedly three years gone has placed them lower ranking in the race, or has it? PayPal does have one serious advantage over the competition, being the main payment method for eBay it has a huge clientele already signed up. The entire world is addicted to eBay (myself included!). This means that there are potential new players who are already members of PayPal and won't need to make an extra effort to sign up to a new alternative deposit method. They are familiar and comfortable with the service. This is probably why Betfair worked so hard to get PayPal back into the internet gambling deposit market for Europe. I know that when PayPal left the deposit arena in 2002 we lost some clients who never returned as their credit card didn't allow for internet gambling deposits and they didn't want to make the effort to join a different alternative deposit method. The Chief Executive of PayPal UK, Geoff Iddison, explained why PayPal changed their minds: “Betfair is a popular, highly regarded, regulated and reputable online gaming site. By having PayPal available to Betfair’s customers, PayPal will enable European users to pay and receive funds safely and securely, without sharing any financial information from simply an email address.” Thus far Betfair is the only internet gambling establishment approved by PayPal and they are very clear that just because Betfair is approved doesn't mean the door is wide open for everyone "… unless PayPal has approved the particular operator (and their details appear above), neither operator or user may use PayPal for the following Gambling Activities which include, but are not limited to: Casino Games, virtual or physical, including: Baccarat, Blackjack, Craps, Faro, Keno, Pachinko, Pai Gow, Poker (whether or not it is considered a game of skill in the gambler’s jurisdiction), Roulette, Sic Bo, Slot machines, Wheel of Fortune." Even other sports betting establishments are banned unless approved "Sports Books or Sports Betting, including the placing of bets on actual sporting events against a book-maker or through a betting exchange. Horse or Greyhound Racing, including: Simple betting (betting between individuals). Sweepstakes betting, where large entry fees, or stakes, are pooled and awarded to winners. Book-making betting, in which speculators offer odds against each horse and accept bets against their predictions. Pari-mutuel betting, where betting odds on a given horse or dog are derived from a comparison between the total amount wagered on the animal and the total wagered on all the animals in the race. Off Track Betting (“OTB”), where players bet on a race taking place in a location outside of where the bettor is situated, “simulcasting.”" Now that Betfair has their foot in PayPal's door theoretically other internet gambling operators should be able to approach PayPal as well. While Betfair is one of the largest sports books online it wouldn't make much sense for PayPal to end their internet gambling relationship there. Even PayPal is making sure that people understand that the relationship with Betfair isn’t one that infers a recommendation on their part "The above Operators [i.e. Betfair] are provided for information purposes only and nothing in this Policy constitutes an inducement, endorsement, promotion, solicitation, offer, advice or recommendation to enter into any Gambling Activities with the Operators mentioned or Gambling Activities generally." It may only be a matter of time before players all over the world (minus the United States) are using PayPal as their payment solution for internet gambling all over again. Neteller better keep their eyes open on this one. Related Links: Posted on: March 23, 2006
Back to March 2006's archive |
||||||||||||
|
|
Del.icio.us
Digg
Google
Spurl
Furl
Simpy
Y! MyWeb
