PayPal, Banks Refused Online Gambling Transactions

Legal industry with $7.4 billion in potential now threatened.

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    NEWSLETTERS

    Nice win! But you won't get paid.

    Legal gambling isn't a hit with PayPal -- or with Bank of America and Wells Fargo.

    The financial institutions, as well as the peer-to-peer, merchant-to-seller payment option PayPal are refusing to play along with legal online gambling, according to Bloomberg.

    Ebay, which owns PayPal, along with Wells Fargo, American Express, Bank of America and others won't allow otherwise-legal gambling customers to process payments -- and are ergo threatening a $7.4 billion annual business, Bloomberg reported.

    Online betting is legal in Delaware, Nevada and soon New Jersey.

    Soon after gambling went live in Delaware, Visa and Mastercard transactions by players were rejected by banks. And in Nevada, players have had trouble opening accounts.

    Gambling companies are pursuing other options, but in the meantime, options are few, Bloomberg reported.

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