Should PayPal now compensate all online players?

For many years, PayPal has been considered the best payment service provider in online gambling. Thanks to buyer protection, fast clearance and convenient operation, the service has won millions of customers around the world. But sports betting is still prohibited by law in many countries. Although a new law is currently being worked on, this has been the case over the past few years. And yet the payments were made. The casinos relied on the license from Malta and the freedom of the EU to provide services. Based on this, PayPal processed the payments. After the court's decision, a snowball effect of cancellations may become inevitable.

Because although there have been legal disputes in the past, they have so far been positive for the payment system. But recently the Ulm District Court ruled in favor of the player. Conversely, the district court in Wuppertal ruled that the PayPal payment could be refunded. We would like to look at two solutions and outline the pros and cons of payment service provider redemption at https://asian-bookies.net/ipl-betting-sites/.

Ulm District Court decided to return the lost amount

A client of the Lenne law firm filed a lawsuit in court for the return of about 10,000 euros. Payment went through PayPal. The payment service provider is specifically accused of violating section 4 clause 1 clause 2 of the State Gambling Treaty. There is a ban on participation. In its decision, LG Ulm specifies that the payment service provider is obliged to carry out the verification to the extent possible. If a transaction violates the law, it should not be carried out. Casino games have been banned by German law for the past few years. Consequently, the court ruled in favor of the plaintiff on December 16, 2019 with case No. 4 O 202/18. PayPal should refund.

What are the arguments in favor of this decision? Has the payment service provider really violated applicable law? Yes. Although the inclusion of casino games in German law is currently being studied, online casinos are currently still banned. LG Ulm refers in particular to the execution of the payment itself. Because the transfer was made by a company that is not allowed to offer its services for sale in Germany - at least not in the casino sector. If all payment service providers are held liable in this way, including claims for damages, payment flows will stop. The judges of Ulm then oversee the enforcement of the gambling law. According to the current view, payment service providers are not currently meeting their control obligations.

Wuppertal District Court defends PayPal

LG Wuppertal argued otherwise. You acknowledge the cooperation between the payment service and the online gambling site. On this page, in turn, the client requested a transfer. Since there is an agreement between the user and PayPal, the transaction had to be carried out. In fact, the Wuppertal court also handles gambling law. However, it is specified that the supervisory authority must inform the payment service about which providers offer illegal gambling. Since the report was apparently not made, the judge found no wrongdoing on the part of PayPal. In short, it was decided that the payment service did not have the task of checking each individual booking for legal certainty. According to the court, even a comparison with a whitelist of allowed booking numbers was not required.
For more interesting reading, check out: How video evidence will impact sports betting