PayPal Pays $10M to Settle Online Gambling Case

Share this article:
PayPal Inc., the online payment network run by eBay, agreed to pay $10 million to settle charges that it acted as a go-between for illegal payments between gamblers and offshore online casinos, the U.S. attorney for the Eastern District of Missouri said last week.


According to the U.S. attorney, from October 2001 to November 2002 PayPal illegally transmitted money for use in illegal gambling in violation of the federal Wire Wager Act. PayPal, San Jose, CA, also agreed to maintain a corporate compliance program for at least two years.


U.S. attorney Raymond Gruender "commended the cooperative, conciliatory approach of PayPal and eBay," the U.S. attorney general's office said.


In August 2002, PayPal paid $200,000 in investigative costs to the New York attorney general's office in another case alleging it had a hand in illegal online gambling and agreed to cease processing payments for gamblers in New York state to online casinos.


Share this article:
close

Next Article in News

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

News Byte: Comcast Expanding Global Ad Delivery Through Partnership

News Byte: Comcast Expanding Global Ad Delivery Through ...

Through a partnership with Adstream , Comcast's AdDelivery Service expands its footprint across the globe.

40 Under 40 2014: Nominations Are Now Open!

40 Under 40 2014: Nominations Are Now Open!

It's time to nominate the 2014 crop of young marketing luminaries for Direct Marketing News's 40 Under 40 Awards. The deadline is Friday, June 6, 2014.

News Byte: MediaCrossing Partners with ASL Marketing on Youth Marketing Tool

News Byte: MediaCrossing Partners with ASL Marketing on ...

The digital media trading firm and marketing database company aim to help marketers target 13 to 34 year olds.