PayPal has removed buyer protection for online casinos – what does this mean for customers?

Online gambling and betting on the Internet are booming. Easy access, open 24 hours and a wide selection of games – arguments that attract more and more casino fans to the Internet. Unlike casinos, visitors to online casinos have to pay a fee before playing their first game at the:

deposit money into their member account. The latter can usually be opened without major hurdles. One problem remains: How do you get the money for the real-money bets into the casino account quickly? Here, many providers now use electronic payment service providers. The latter are generally referred to as e-wallets or electronic purses.

One of the well-known and internationally widespread e-wallets is PayPal. Offered by various operators of online casinos, players have experienced a surprise in November 2016. The payment service provider changed its terms and conditions. This has affected the buyer protection for stakes in online casinos. One reason for this decision could be that PayPal also perceives a growth in the sales of this industry. According to a Goldmedia market study, the turnover in 2016 will speed over the 5 billion euros.

PayPal offers an interesting buyer protection to online shoppers, which is supposed to create trust. With regard to online casinos, this protection has now been abandoned. It remains to be seen how this will affect the industry.

What does buyer protection actually mean?

A rapidly growing turnover in the gambling market means in the end that for payment service providers like PayPal, which offer a protection function for transactions, the risk of disputes increases. And unlike in the context of classic mail-order business, where there is a trade in goods, there is a considerable uncertainty factor to be factored in when it comes to gambling.

What does buyer protection actually mean in this context? PayPal’s own definition of the term basically assumes two possible reasons for claims at this point – namely:

  • no shipment of an ordered item (Item Not Received)
  • faulty/different item (Significantly Not As Described).

In these two situations, Buyer Protection ensures consumer rights. Affected parties can open a Buyer Protection case. In the procedure, the facts of the case are examined by obtaining various information from the supplier and the buyer.

If the procedure is successful from the buyer’s point of view, the payment service provider refunds the disputed amount including shipping costs. Buyer protection (a principle with which other companies now also work) first became established via online auction platforms.

Do many online casinos offer PayPal as a deposit option?

PayPal has an advantage as an e-wallet: it is well-known and used by millions of users today. In this respect, the probability is high to go as a beginner with a PayPal account in the back on the search for an online casino. Thereby, numerous PayPal online casinos can be found online, so that still the payment is no problem.

Basically, various operators of Internet gambling halls today offer the e-wallet among the supported payment methods. But: it cannot be assumed across the board that PayPal is the front-runner at this point. The experiences from practice are rather mixed. Many well-known casinos did use the electronic wallet, but some providers rely on their alternatives.

Ultimately, beginners who simply want to turn a few rounds at the slots or roulette will not get past a testing look behind the scenes.

List of the online casinos with PayPal

Betway Casino1750$ bonus on the first 3 depositsSlots: 500+Blackjack: 18Roulette: 14Live: 19
PlayLuck CasinoUp to 800$ + 100 free spinsSlots: +800Blackjack: 18Roulette: 15Live: 140+
Casino GodsUp to 1500$ + 300 free spinsSlots: 500+Blackjack: 31Roulette: 33Live: 112
Bwin CasinoUp to 200$ + 50 free spinsSlots: 1,800+Blackjack: 50+Roulette: 80+Live: 65
bet365 CasinoUp to 200$Slots: 200+Blackjack: 4Roulette: 4Live: 10

Alternatives: How do the payment methods look in general?

In the end, PayPal remains just one of several electronic wallets which compete for the favor of consumers. Anyone who wants to choose an online casino must realize that there is no one perfect payment method.

Generally, the player is based on the following three variants:

  • E-wallets
  • Bank transfer
  • Credit card.

Bank transfer is the instrument for which every casino fan must have the most patience. Deposits and withdrawals here (including internal processing) take several days, often up to a few weeks.

The credit card works similarly uncomplicated as the electronic wallet. However, trouble arises from time to time in connection with the fees. Some banks evaluate the deposit to a gaming bank account as a withdrawal – and debit the account with correspondingly high fees.

Another very important aspect is the payout. Here, trouble is inevitable if players do not deal with the terms and conditions. Unfortunately, some online casinos charge fees for processing individual cash-outs – provided that certain payment methods (such as bank transfer) are used.

What should players pay attention to in the future?

Who wants to play online poker or roulette in the casino, has today literally the agony of choice. Especially abroad (Malta or Gibraltar), many casinos have emerged in recent years, whose offer is aimed at the customers. The problem is that the legal situation in many countries is very unclear and causes uncertainty.

Accordingly, the topic of gambling and seriousness is dealt with timidly when choosing an online casino. Yet this point is immensely important. Every beginner is well advised to look for:

  • the license for gambling operations
  • experiences of other players
  • Seal or the like. (e.g. eCOGRA)

to keep an eye out for. The license shows, for example, that the general conditions of the gaming operation are monitored by the authorities.

At the same time, however, a certain amount of “personal initiative” is also required. Those who neither deal with the terms and conditions nor the bonus and gaming rules of the casinos should not be surprised with regard to surprises.

Example casino bonus: Offered as a welcome bonus, the player must first achieve a certain minimum turnover before the bonus money becomes withdrawable credit.

And also with regard to self-exclusion, questions about multi-accounting or customer service, a close look is required. Unfortunately, the anger that is sometimes revealed in Internet forums shows that beginners sometimes act very carelessly at this point.

Online casinos are becoming increasingly popular today. The way to the casino strongholds becomes more and more a vacation adventure.

Conclusion: PayPal is not the only payment service in the online casino

In November 2016, PayPal adjusted its T&Cs regarding buyer protection for gambling and betting transactions. This message will interest a part of the players, but leave many other casino fans cold. The reason: PayPal is only one of several payment methods for the deposit to the member account. And is therefore only used to a limited extent. In addition, many players are aware that they can also lose money in the casino. So how should buyer protection be realistically enforced? From the company’s point of view, however, the move is understandable. After all, every case – no matter how it turns out – costs money in the end.