PayPal Announces it Has Altered its Terms & Conditions in Germany, Enforcing Stricter Control in Regards to Online Gambling Products and Financial Transactions
PayPal is cracking down on gambling related payment transactions in Germany. The payment processor made some changes to its terms and conditions in the country that will prohibit operators from using the online payment system to process transactions for iGaming payments. Online casino activity is not legal outside the sate of Schleswig-Holstein, but PayPal rules are enforced for the rest of the country.
PayPal said the changes will go into effect on October 21, 2019. The country’s first federal blocking order to a payment service provider was issued back in June. The company or payment processor was not named with the assumption of it being PayPal. The company, whoever it was, was ordered to stop working with operators and stop accepting payment transactions for lottery, casino, bingo and poker. At that time the Niedersachsen Ministry of the Interior sent out warnings to several payment providers regarding illegal online gambling.
PayPal changing its terms suggests that the Third State Treaty on Gambling is set to be enforce by German authorities. The 16 Minister-Presidents of each German state signed the legislation that will go into effect on January 1, 2020. State leaders are aiming to introduce new regulatory framework that may replace the Third State Treaty.