It should be noted that online casino games are not legal in Germany except for the state of Schleswig-Holstein, as such, the use of Paypal for fund transfers related to online gambling in other parts of the country will not be possible anymore.
In its update, the online payments services provider has said that the changes will come into effect on 21 October. In its announcement, Paypal also said 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.”
According to PayPal, the added term exists to clarify section 9.1 of its user agreement, which already prohibits clients from the “infringement of applicable law, contract or regulation.
Germany has also been strict with online gambling ties of companies seeking sports betting license in the country. Gambling operators seeking licenses for online sports betting in Germany will have to show that they are not associated with online casino operators or affiliates offering online casino products to locals.