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Can Raffle Websites Use Paypal?

Paypal is the currently the most popular payment platform on the planet, but can raffle websites use Paypal to take payments?!

In 2022, over 22 Billion transactions were made through Paypal and this popularity continues to rise year on year! It’s safe, secure and easy to use! That’s why it’s the first choice for many businesses taking online payments from their customers.

Raffle providers across the UK sell tickets via their website so using a trusted payment platform is essential. Furthermore, ticket buyers need to feel confident that their card payment details are kept securely and away from scammers.

Paypal must be their first choice then, right? 

Paypal and Online Raffles

Paypal’s view on gambling is very clear. They will not allow any business associated with any form of gambling to use their payment platform to take payments. However, there is a slightly grey area to this. 

Paypal state that the following type of business can not use their payment platform..

Activities involving gambling, gaming and/or any other activity with an entry fee and a prize. This includes, but not limited to casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventures that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes, if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law.

It is surprising then that in some instances, Paypal can be used for online raffle payments. It appears that well established online raffle providers can be approved for Paypal payments. Although the time period is quite vague, it appears that a raffle provider active anywhere between 1 and 2 years+ can apply to use Paypal. 

When we spoke to Paypal to get further clarification on this they essentially said that each case is different for every raffle business! That is about as far as we seem to get for answers from Paypal! 

What we would like to point out is that it is possible for some online raffle providers to use Paypal initially. This is because they are not honest about their type of business when filling in the application. In some cases, a genuine mistake is made and the online raffle provider is just not aware of Paypal’s policies. However, Paypal do seem to catch up with them fairly sharpish. They will then shut down their account and ask for all money withdrawn from their Paypal account to be returned! 

To summarise, only established online raffle providers with a proven track record will be given the option to use Paypal. It can take around 1 to 2 years before Paypal will even consider allowing their payment platform to be used for ticket purchases.