| 11:17 am on Nov 12, 2002 (gmt 0)|
"02:00 AM Jul. 09, 2002 PT
Online gamblers, most of whom can no longer use U.S. credit cards to fund their habit, are about to lose yet another payment option.
Under the terms of its planned purchase of PayPal (PYPL), eBay said Monday it intends to stop offering the payment service for Internet gambling transactions. "
We had a thread here but I can't find it.
| 11:35 am on Nov 12, 2002 (gmt 0)|
Thanks Mike, nice catch!
That was very interesting! If possible, after the sale to ebay, I may use paypal again as an alternative payment source.
| 4:27 pm on Nov 12, 2002 (gmt 0)|
Paypal is doing this because Ebay is forcing it to do so. I'm sure this will not be the only adjustment Paypal will have to make to please it's new owners.
| 12:26 pm on Nov 13, 2002 (gmt 0)|
I believe I read an article a few months ago about a federal investigation or law suit concerning paypal and gambling. Because internet gambling is not legal in the U.S. people were using paypal to pay and recieve funds and somehow getting around U.S. law. The article also mentioned this being taken care of before ebay would buy paypal. I think maybee the article was in business week.
| 4:49 am on Nov 14, 2002 (gmt 0)|
Ebay bought Paypal, a condition of the sale was getting out of the online gambling business, which happens to be the only thing that made Paypal finally turn a profit recently.
There is no US law that prohibits citizens from gambling online. Some states, like New York, have such laws.
Since not doing these transactions guts Paypal's profitability, the Paypal folks fought a losing battle to urge Ebay to not eliminate the transactions, but Ebay only cares about getting rid of its own useless payment program and absorbing/eliminating an obvious competitive threat.