PayPal and Online Betting
There’s a common misconception that PayPal cannot be used to make deposits or withdrawals in the United Kingdom. However, PayPal can be used in the UK and other European countries and it’s actually a hugely popular payment option at online betting sites.
While it is popular among regular gamblers, the service isn’t offered everywhere and it may be quite hard to find an online betting site that offers PayPal as a payment option. This is because PayPal requires users to complete their verification process before using the service as a part of a crackdown on fraud.
PayPal’s tight regulation means users who deposit through it are able to claim welcome bonuses and other promotions. Meanwhile, players who use competitor e-wallets such as Skrill and Neteller to make deposits cannot claim these bonuses because they lack PayPal’s verification process.
PayPal Betting Sites in the US
Since PayPal can only be used at online betting sites in countries where gambling activities aren’t regulated or allowed, the service cannot be used in the United States, Canada and several other countries. This is because using the service for gambling activities requires pre-approval, as PayPal’s site states:
“Activities involving gambling, gaming and/or any other activity with an entry fee and a prize, including, but not limited to casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventues that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes, if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law.”
Registering with PayPal
One of the major appeals of PayPal is that it’s incredibly easy to use and create an account with. Before you can make any deposits through the service, you’ll have to register an account. Luckily enough, PayPal offers an incredibly speedy registration process.
All you need to do is follow these steps:
Head over to PayPal’s official website and click ‘Sign Up’ at the top of the page.
Click ‘Personal Account’ and then ‘Continue’ to begin the registration process.
You’ll need to provide your full name and email address, create a password and complete PayPal’s security prompt.
You’ll need to provide your address, date of birth, phone number and nationality. Then click ‘Agree and Create Account’
Your account will then be created. However, you’ll still need to add a card. To do that, click the ‘Add a Card’ button and follow these steps:
Enter your debit or credit card number, expiry date, security code and the card type. Enter your billing address and click ‘Add Card’.
That’s it! You’ve successfully created a PayPal account and can start making payments online!
Some online betting sites have begun offering a quick registration service on their websites, allowing you to create an account on the betting site using your PayPal details. Basically, using this service allows PayPal to share your information with the betting site and register you.
While many people may feel wary of using such a feature, it does mean that you can register for the betting site within seconds. At the time of writing, the service can only be used at Coral and Ladbrokes, the first two betting sites to introduce the service.
It’s important you understand that you each PayPal account is tied to an email address which means you cannot make multiple customer accounts with the same email. You can create a customer and business account using one email address, but never two customer or two business accounts.
This limitation was criticised in November 2018 by users who claimed that the limitation should be lifted to allow more freedom among customers.
How PayPal Works At Online Bookmakers
Almost everyone has a PayPal account today and it’s never been easier to use the service at online betting sites. All you have to do is find a betting site that accepts PayPal as a payment option (Just scroll up to our table to find out) and navigate towards your account.
Click the ‘Deposit’ button and then the PayPal symbol to use the service.
You’ll then be asked to select an amount of either £20, £50 or £100 or enter a different amount. Accept the Protection of Customer Funds and then click ‘Deposit’.
You’ll be taken to another screen which may require you to sign into your PayPal account. When you have, you’ll be shown a screen confirming your payment. All you need to do is click the ‘Confirm’ button.
That’s it! We told you it’s easy.
Is PayPal Safe?
Many users are worried that PayPal isn’t safe to use over the web and that’s completely understandable. However, PayPal is actually one of the safest payment options you can use at betting sites. Before PayPal launched, the company behind it was actually developing security software and all of that security has been built into PayPal itself. It’s much safer than using debit or credit cards as you don’t really supply any personal information to the online betting site.
In addition, PayPal is known for being somewhat cautious when it comes to fraud and it won’t hesitate to lock your account if it suspects any dodgy activity.
PayPal’s Protection Program
PayPal runs its own protection program for both buyers and sellers, though it’s mostly used for online purchases. When you purchase physical goods online, PayPal will refund you if it doesn’t arrive or if it doesn’t match the seller’s physical description. As a seller, PayPal will ensure you receive a full refund in the case of an unauthorised payment or a buyer claims they never received the item.
However, it’s important to note that buyers and sellers must fulfil specific requirements before they are given refunds.
As mentioned above, PayPal utilises security software to keep it safe and secure. The service uses end-to-end encryption in all transactions including a TLS connection (A secure connection over HTTPS), key pinning (Ensuring you can connect only to a legitimate PayPal server for transactions) and PCI-DSS (Payment Card Industry Data Security Standard).
All of these services help keep you safe when making purchases or transactions through PayPal.
If that isn’t enough, you can also use PayPal’s two-factor authentication, also known as PayPal Security Key. When this is enabled, you’ll be sent a one-time code via SMS to confirm purchases or to log-in. Only you have access to the code, which makes it harder for other people to use your account.
PayPal is generally free to use when making deposits and withdrawals at online betting sites. However, you may be charged additional fees for transactions that are sent between different countries or involve currency conversions.
For example, if you reside in the UK, have a UK bank and bet in British Pounds at a UK online betting site, you won’t be charged any additional fees. However, if you are located in Europe, have a European bank and bet in Euros at a UK online betting site, you’ll be charged a fee for currency conversion.
The fee charged depends on where the recipient of your payment is located. For example, if you’re situated in the UK, Jersey, Guernsey, Isle of Man or Gibraltar and make a payment to the US, Canada or most of Europe, you’ll pay the following fees:
- Payment of £00.00 – 49.99: A fee of £0.99
- Payment of £50.00 or more: A fee of £1.99
Meanwhile, if you’re situated in the UK, Jersey, Guernsey, Isle of Man or Gibraltar and make a payment to the rest of the world (Asia, Australia and more), you’ll pay the following fees:
- Payment of £00.00 – 49.99: A fee of £0.99
- Payment of £50.00 – 99.99: A fee of £1.99
- Payment of £100.00 or more: A fee of £3.99
Aside from that, you shouldn’t be charged any fees from PayPal. While most online betting sites don’t charge you anything extra for using PayPal, it can happen. It’s important to read through the terms and conditions to find out before making a deposit.
PayPal: Advantages & Disadvantages
There are numerous advantages and disadvantages when it comes to using PayPal as a payment option. These advantages and disadvantages can help you decide whether or not PayPal is the payment method for you to use at online bookmakers. Take a look below to find out what we think are the biggest pros and cons of the payment option:
- Available on any device
- One of the fastest & safest methods
- Incredibly easy to register with and use
- Can charges fees for currency exchanges
- Can be slow when processing refunds
- Customer support can be somewhat poor
History Of PayPal
Founded by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery, PayPal was first established as Confinity in December 1998, a company that developed security software for handheld devices. However, the company changed direction when John Malloy from BlueRun Ventures developed and launched PayPal as a money transfer service as a part of Confinity.
In March 2000, Confinity merged withX.com, an online banking company founded by Elon Musk. Musk was confident about the future success of the company but Bill Harris, the then-president and CEO of X.com, disagreed and left his position in May 2000.
In October of the same year, Musk decided to concentrate on PayPal as a money service and officially launched PayPal in 2002. Several months later, the firm was bought by eBay for a whopping $1.5 billion and PayPal quickly became the main payment used on the shopping platform.
In September 2014, it was announced that eBay would launch PayPal as a separate publicly trading company. The online payment service launched independently in July 2015 with Dan Schulman as President and CEO and former eBay CEO John Donahoe as chairman.
The firm’s success only continued to grow after it became an independent company and in July 2015, PayPal acquired digital money transfer company Xoom Corporation, giving PayPal access to international customers and expanding its reach to a further 37 countries. Most recently, PayPal acquired Swedish payment processor iZettle for $2.2 billion, making it the largest acquisition to date in the company’s history!
Questions & Answers (FAQ)
Can I use PayPal to bet on horse racing?
Yes, UK betting sites accept PayPal for placing bets on all types of sports including horse racing.
Can I claim free bets with PayPal deposits?
Most UK bookmakers exclude PayPal as a deposit method from their welcome offers. However, some betting sites only exclude e-Wallets such as Skrill and Neteller. To find out more, have a read through our betting sites page.