PayPal Eyeing New Jersey Online Gambling Market, Regulators Confirm

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PayPal’s rumored re-entry into the world of processing online gambling payments in the United States is rapidly moving closer to becoming reality.

We first reported that PayPal was close to striking processing deals with a handful of regulated operators in our Quick Take email on August 6th, citing a source close to the companies involved.

And yesterday, EGR reported that the DGE and PayPal were in talks, citing a source close to regulators.

Today, GamblingCompliance’s Chris Krafcik passed along direct confirmation from the NJ Division of Gaming Enforcement:

It’s difficult to quantify the impact that the introduction of PayPal would have on the New Jersey market, which has been hampered by payment processing issues since launch in November of 2013.

A 2013 article from Forbes estimated that the company has over 50 million active users in the US.

PayPal would have the immediate, obvious impact of providing a popular, relatively easy-to-use payment option to the market.

But the company’s entry into New Jersey would also reverberate in any number of positive ways, including:

  • Boosting consumer awareness and educational efforts surrounding online gambling.
  • Pressuring other payment processing entities to fully embrace the market.
  • Further delineating regulated online gambling from unregulated sites.
  • Adding a powerful ally in the push to expand regulation to other states.
  • Diminishing the lingering credibility questions surrounding the online gambling industry.

File under worth noting: PayPal and PokerStars recently inked a deal that allowed American free-play customers to purchase chips on using PayPal.

- Chris is the publisher of Grove also serves as a consultant to various stakeholders in the regulated market for online gambling in the United States.
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