PayPal to Stop Processing NY Gambling Charges

Share this article:
Online payment processing firm PayPal Inc. agreed to stop processing payments from gamblers in New York state to online casinos under a settlement with state attorney general Eliot Spitzer, the two said in separate statements yesterday.


PayPal will stop processing the payments by Sept. 1 and pay the attorney general's office $200,000 to cover investigative costs. The settlement is the latest shot in an ongoing battle Spitzer has waged against online gambling.


"This agreement continues the work of my office to enforce the law prohibiting illegal gambling, online or offline," Spitzer said in a statement. "This case shows that we intend to stop any company who facilitates illegal gambling transactions."


In June, Spitzer said that Citibank had agreed to block online gambling transactions with its credit cards.


Spitzer contends that online gambling is more addictive than offline and that there is no way to prevent minors from gambling with credit cards.


In the settlement, Spitzer estimated that 1.1 million of PayPal's 17.8 million members list New York addresses.


PayPal is to be acquired by online auctioneer eBay in a deal worth $1.4 billion as soon as it is approved by shareholders, likely by the end of the year.


Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

NBA Names Insurance Exec as its CMO

NBA Names Insurance Exec as its CMO

Nationwide and State Farm veteran Pamela El takes the league's marketing helm next month.

Bloomberg Names Bigley CMO

Bloomberg Names Bigley CMO

Communications chief Deirdre Bigley is appointed head of global marketing for the business and financial news company.

2014 Essential Guide to Omnichannel Marketing

2014 Essential Guide to Omnichannel Marketing

The 2014 Essential Guide to Omnichannel Marketing‚ÄĒeverything you need to know about Omnichannel, all in one spot. Read on for insight.