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Starting on October 21, German gamblers will no longer be able to use their PayPal accounts for online casino gambling purposes after a recent update of the payments giant’s German-language guidelines.
After the government recently ordered the payment processor to stop facilitating unauthorized online casino activity, PayPal updated its German market terms of service to include “offers that are not legal in your respective whereabouts, including some online gambling offers,” in its list of prohibited activities.
The changes also add that “if you are unsure as to whether or not a specific offer is permitted, you must ensure that it is legal before using PayPal’s services.”
News about PayPal cutting off German online casino payments has arrived a couple of months after the German State of Lower Saxony (Niedersachsen) back in June issued an order to an unnamed payment services provider, widely thought to be PayPal, urging it to immediately cut ties with any internationally licensed online gambling operators targeting German customers.
PayPal’s decision suggests German authorities are set to strictly enforce the Third State Treaty on Gambling. The legislation has been signed by the 16 Minister-Presidents of each German state, but must be ratified before the end of the year in order to come into force from 1 January 2020. Currently, the state of Schleswig-Holstein is the only place in Germany where online casino gambling is legal.
The Third State Treaty on Gambling is expected to be in place until 30 June 2021, by which time state leaders aim to introduce a new, overhauled regulatory framework that will replace both the State Treaty and Schleswig-Holstein’s liberal model.
