PayPal is one of the most popular online payment systems in the world, but you’ll have a hard time finding an online sportsbook that accepts Paypal directly. While PayPal won’t allow you to deposit directly with your sportsbook (unless you live in a jurisdiction where online betting is legal) , they will allow you to buy crypto-currencies, namely bitcoin.
Once you have acquired your bitcoin, you can quickly and easily fund your betting account with them since almost every offshore sportsbook now accepts bitcoin.
Confused? Don’t be. We’ll walk you through the process below.
Step 1: Open a PayPal Account
The first step is to open a PayPal account, if you don’t already have one.
Step 2: Fund Your PayPal Account
Next, you need to fund your PayPal account using any of their available methods. In the U.S. these include credit or debit card, bank wires or electronic check drawn directly from a bank account.
Step 3: Find a bitcoin exchange that allows you to buy bitcoin using PayPal
Here is a list of exchanges that, according to CoinChapter.com, currently allows you to buy bitcoin using PayPal. In this article, we are going to use LocalBitcoins.com . Another similar site that allows you to use your PayPal account to buy bitcoin is Paxful.com.
Next open your account at LocalBitcoins.com. Click on ‘Buy Bitcoin’ in the main menu. Complete the drop down filters in the ‘Quick Buy’ section by entering the amount you wish to buy, your currency, your country and select ‘PayPal’ in the last drop down. Click ‘Search’ button to see the results of available vendors.
Step 4: Select your bitcoin vendor
Be sure to choose the most trusted vendor. Your criteria should be highest number of confirmed trades with different partners, 100% Feedback score and the lowest bitcoin price.
You’ll also want to consider his ‘Trusted by’ score, and whether or not he has his Email, Phone and ID/Passport verified.
Be sure to also read the vendor’s ‘Terms of Trade’ policy to ensure his/her requirements.
Once you have chosen your vendor, click on ‘Buy’ and follow the step-by-step instructions.
Step 5: Wait for the bitcoin to hit your wallet
Depending on the vendor, your bitcoin should arrive to the bitcoin wallet you provided in 1 to 2 hours. Once it hits your wallet, you can send your bitcoin to your favorite online sportsbook.
PayPal betting FAQ
Can I use PayPal on betting sites?
PayPal only allows direct deposits to sites that are fully-licensed in their resident jurisdictions.
So, residents and visitors to New, Jersey, Nevada and any other state where online betting is legal, can use PayPal as an option. Â In unlicensed states, PayPal cannot be used directly on betting sites.
Can you buy Bitcoin with PayPal?
No. PayPal does not allow users to directly purchase Bitcoin or other cryptocurrencies at this time.
Can you buy Bitcoin with PayPal at Coinbase?
No. At the moment you can only withdraw funds from Coinbase to your PayPal account.
Are there fees associated with using PayPal at online betting sites?
Online betting sites do not charge a fee to deposit with PayPal. PayPal charges 2.9% to deposit using a credit card or debit card. There is no fee to use an existing PayPal balance or an electronic funds transfer from a bank account.
Why can’t US players deposit at a betting site using PayPal?
PayPal only permits gambling transactions in jurisdictions where it is licensed. That is why it is available in Europe and now on New Jersey and Nevada. The online sports betting sites available to players offshore are not licensed so PayPal will not allow transactions with those sites.
Didn’t PayPal once process payments for offshore sites?
Yes, from 2000 until November 2002, PayPal was once the main ewallet for offshore poker, casino, and sports betting sites that accepted US players. PayPal paid a $10 million fine to the US government for these transactions in a civil action.
Do DraftKings and FanDuel accept PayPal?
DraftKings and FanDuel are daily fantasy sports sites. These businesses are considered to be ‘skill gaming’ under most state laws so PayPal’s is processing payments for FanDuel and DraftKings in all jurisdictions that they operate.
PayPal’s online betting history
PayPal was the first major ewallet on the Internet. It allowed individuals the ability to send money to a company or another person. It became the most popular way to purchase an item on Ebay. It was also the top choice for online gambling sites that accepted Americans, although it was a trivial amount of PayPal’s total business.
Online gambling transactions accounted for about eight percent of PayPal’s entire processing business in 2002. PayPal had little business outside North America at the time. That has changed drastically and PayPal is now an international company that processes payments in over 100 countries. eBay acquired PayPal in 2002. The company has since split and became two different companies in 2015.
PayPal stayed out of the online betting business until 2009. That is when the company decided to start processing payments again for the online gaming industry. The difference is this time around, the sites PayPal did business within the sector were fully legal and licensed in the jurisdictions where PayPal processed payments. This generally meant that the United Kingdom was the only country where PayPal was available as a deposit and withdrawal option.
The next step for PayPal in the online gambling industry came in 2015. That is when PayPal and Caesars Interactive Entertainment started processing online poker and casino payments for WSOP.com and Nevada and New Jersey, as well as 888, Harrah’s Casino and Caesars Casino.
PayPal continues to be the largest ewallet in the world. Its movement back into the online betting industry helped it compete with Neteller and Skrill in Europe. Becoming a processor for big names like Betfair, Bet365, Ladbrokes and William Hill helped give it brand awareness in other countries where it may not otherwise have received the attention from players.
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