German Online Casino Players Can No Longer Use PayPal

Posted by: CasinosOnline in Casino News
PayPal banned in Germany

German gamers can no longer use PayPal

Unfortunately, PayPal will no longer allow casino payments be made by users from Germany. There have been recent updates to German-language guidelines of the popular electronic wallet payment system and the new terms of use restrict players from this European country to use their PayPal account for the purposes of funding a gambling balance.

The news about updated policies of the banking giant came shortly after Germany launched a crackdown on transaction companies working with German-facing online casino operators. PayPal’s updated guideline 9.1. Prohibited Activities states that bettors with residence in the Federal Republic of Germany will no longer be able to use the e-wallet service unless they are certain that such activity is legal in their place of residence. The policy speaks directly to the user and proclaims that service will be denied when it is “in connection with offers that are not legal in your respective whereabouts, including some online gambling offers.” The new terms of use are expected to come into effect on October 21, 2019.

German Market Regulations

Currently, the German online gambling market is in the process of reorganisation. This process has been going on for years and there have been some setbacks that made it slow down. The state of Schleswig-Holstein is the only region in Germany where online casino gambling is legal. Active licenses for internet gambling will not expire until mid-2021. At that point, the authorities have hopes that a permanent gambling regulatory framework will have been established. According to several sources, approximately half a year ago, the German State of Lower Saxony issued an order to an unidentified payment services provider, urging it to immediately cease cooperation with any internationally licensed online gambling operators catering to German customers. Speculations indicate that the affected electronic payment processor could be PayPal, but there haven’t been any confirmations yet.

About PayPal

PayPal has been around since 1998, and it is known as one of the pioneers in the sector of online payments. The company has grown into one of the largest services for sending and receiving money over the internet. The brand counts on around 200 million active account holders in over 200 countries around the world. By merely providing their email address and an accompanying password, PayPal users can easily transfer funds to their online casino accounts or convert their mobile phones into e-wallets by using the system’s mobile app.