Online Casinos That Accept PayPal PayPal is one of the biggest online payment methods in the world. It has millions of users across the globe and was the facilitator of 9.9 billion payment transactions in 2018 alone (Statista – PayPal: Statistics & Facts). Therefore, it’s pretty clear why casinos sites would want to accept PayPal.
My client received a 1099-K from Paypal for online gambling. He said the amount shown is incorrect because it includes his deposits and are not all winnings. How/where does this go on the Federal tax return and how do you break out his deposits vs. Thank you in advance.

PayPal is the most popular online wallet in the world, and it has once again become an option for some online gambling markets — including parts of the US.

After cutting off gambling-related transactions for several years, PayPal has reopened its services to regulated operators. The majority of legal, licensed online gambling sites now make use of PayPal.

PayPal is an American company, and as such it follows strict government legislation concerning online gambling. It only allows gambling operators to use its services if gambling activities are legal in the. Many gambling sites that accept PayPal also happen to be all-in-one sites. They usually offer at least two kinds of gambling, sports and casino being most common, but can also include bingo, poker and financials.

Below are some of the basics about using PayPal in connection with online gambling.

Online gambling sites accepting PayPal in the US

Paypal is used extensively across betting, fantasy sports, and online casino/poker platforms.

Online Poker

Sports betting

All of the major online sportsbooks in the US use Paypal, including DraftKings Sportsbook and FanDuel Sportsbook.

Paypal Gambling Sites Usa

Daily fantasy sports

PayPal also facilitates transactions related to daily fantasy sports. The contests are believed to fall under skill-game laws in most states, although there is a lack of legal clarity in some. Nonetheless, PayPal processes deposits and withdrawals for all DFS sites (such as DraftKings and FanDuel) in all states where they operate.

Online casino & poker sites

In 2015, PayPal started processing online poker and casino payments for WSOP NJ, WSOP Nevada and 888 Poker and 888 Casino, as well as Harrah’s and Caesars online casino. It was an important addition to help further differentiate the regulated industry from the unregulated one.

The list continues to grow, too, now including:

Market leader Golden Nugget
FanDuel Casino

To this day, PayPal remains the largest ewallet in the world, both for commercial transactions and those involving online gambling apps and websites.

Horse betting sites

Several of the regulated online horse race wagering sites in the US accept PayPal, including:

Paypal Gambling Usa

TVG
DRFBets
TwinSpires

PayPal Gambling FAQ

How do I fund a PayPal account?

Using an existing balance is arguably the easiest way to deposit to a poker room, casino or sportsbook. But if you’re starting with an empty PayPal account, there are several quick ways to fund it.

An instant electronic check can be drawn from a bank account, and larger transactions are facilitated via wire transfers. European gamblers may also use a credit card or debit card, including the PayPal Extras Mastercard.

The latter is not an option for Americans. Those in the US may not use a card to fund their PayPal account for gambling purposes.

Can I deposit using PayPal if I don’t have a PayPal account?

No. Players must create a PayPal account if they wish to use it as a deposit method. It’s a simple process that only takes a few minutes.

It’s also worth noting that many online gambling sites require the user account and PayPal account to be registered with the same e-mail address.

How do I withdraw from PayPal?

PayPal withdrawal options include electronic check and check by mail. The site also offers a debit card that may be used at most retailers and ATMs.

Why don’t I see PayPal as a withdrawal method?

PayPal will appear as a withdrawal option once a deposit is made using the service.

Are there fees associated with using PayPal at online gambling sites?

Online gambling sites typically do not charge a fee, and there is no PayPal fee for using an existing balance or funds transfer from a bank account. PayPal does charge 2.9 percent for transactions using a credit card or debit card.

Can I use a family member or friend’s account to deposit via Paypal?

No. The PayPal account used to deposit at a gambling site must belong to the account holder.

Is PayPal a safe way to deposit at gambling sites?

Yes. PayPal has a reputation as one of the very safest ewallets. It’s arguably safer than using a bank account directly, as it provides an additional layer of security between the gambling site and the player’s financial information.

What are the pros and cons of using PayPal?

Pros:

Instant deposits
Variety of deposit options, including credit card, debit card and electronic bank transfer
Provides a buffer between the gambling website and financial information
Widely accepted by large businesses, making it more useful than some of its competitors
Balances can be created and transferred between friends and organizations

Cons:

Deposit fees associated with credit card deposits
Withdrawals can be slower than other ewallets

What countries use PayPal for online gambling?

PayPal is available for gamblers in Austria, Australia, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Portugal, Spain, Sweden and the UK.

Gamblers in regulated US markets can use PayPal for online gaming transactions, too, and it’s an option for sports betting and horse betting sites where permitted.

Read more about PayPal sports betting sites here.

Can US players deposit at a gambling site using PayPal?

PayPal only permits gambling transactions in jurisdictions where it is licensed, like Europe. Online gambling sites in Nevada, Delaware and New Jersey are also permitted to use PayPal as a payment option.

The gambling sites available to players outside of regulated markets are, by definition, unregulated. Often located offshore, PayPal does not do business with those sites.

Do DraftKings and FanDuel accept PayPal?

DraftKings and FanDuel are daily fantasy sports sites. Most state laws classify these platforms as a form of skill gaming. Therefore, PayPal’s legal opinion is that processing DFS payments is legal in all available jurisdictions.

Didn’t PayPal once process payments for offshore sites?

Yes. PayPal was once the main ewallet for offshore gaming sites that accepted US players. This included poker, casino and sports betting, processing these payments until late 2002.

The US government began investigating these transactions around this time, citing both the Wire Act and the Patriot Act. The legal pressure was likely a significant factor in PayPal’s ensuing sale to eBay. The new owner paid a $10 million Casino planning and design. civil fine to clear the slate with the courts.

Under eBay’s guidance, PayPal ceased all gambling transactions for a time.

History of PayPal in online gambling

PayPal was the first major ewallet on the internet, allowing easy financial exchanges between companies and/or individuals.

It quickly became the top choice for online gambling sites that accepted US players, representing a significant portion of PayPal’s total business. Gambling transactions accounted for about eight percent of PayPal’s entire processing operation in 2002.

At the time, PayPal