Why Most Americans Can’t Use PayPal for Gambling? What can they do?

Even though PayPal is a viable option for  most of the online transactions, it isn’t suitable for online gambling In the US. The restriction comes from the UIGEA- Unlawful Internet Gambling Enforcement Act.

According to the act PayPal prohibits transactions for any gambling activities in the US States where gambling is illegal. But it allows and approves transactions in US where gambling activities are legal.

PayPal makes it crystal clear that if you play anything illegal then you can’t use PayPal to send or receive payments.

The UIGEA passed back in 2006 and it says- “The UIGEA prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the internet and that is unlawful under any federal or state law.”

The strict laws prohibit PayPal but there are some exceptions. Like, it operates in states where gambling is legal. And Fantasy sports can also use PayPal for online transactions.

But with so much restriction with PayPal, Americans have a hard time.

Click here for checking some of the casinos that accept Paypal as their prominent payment method.


Other than PayPal you can use your regular Credit, Debit, Prepaid or Gift cards for transactions.

Bitcoin is another popular alternative to PayPal and you can also use money transfer services like Western Union.

These alternatives are lifesavers.

But PayPal has many advantages which can’t be compared to the alternatives.

Advantages of using PayPal

  • Easily Accessible- Anyone with an account or a card can create a PayPal account.
  • Multipurpose- Other than online gambling it can be used for spending and bill paying.
  • Perks of using it for online gambling- Deposit fees covered by the gambling site, Deposits clear instantly. It only works for trustworthy gambling sites.
  • Use PayPal for Fantasy sports.
  • You can also use it for cash outs.

PayPal is the best friend of online gambling because it is easy to use, fast and convenient. If you live in a country which legalized use of PayPal for online gambling then you are good to go.