posted on July 9, 2002 04:20:16 AM new
Under the terms of its planned purchase of PayPal (PYPL), eBay said Monday it intends to stop offering the payment service for Internet gambling transactions.
posted on July 9, 2002 04:22:13 AM new
Uaru: Since you are the Paypal advocate can you tell us why it took a reputable company such as eBay to change Paypal's dicey business practices with illegal online gambling?
posted on July 9, 2002 06:17:05 AM new
Sure, but in return I'd like you to answer my closing question.
eBay probably doesn't want to raise the ire of the credit card issuers anymore than they will be doing. eBay - PayPal are in a position to take away a lot of business with a lot of banks that make money off of merchant accounts. Your average Joe is going to probably rather pay though PayPal for their eBay purchase over a seller's merchant account for several reason.
1. The buyer doesn't have to enter their credit card info over and over to a multitude of companies.
2. EBay will undoubtably have payments made via PayPal extremely easy, they'll probably incorperate it into the Half.com sales also.
Closing down the internet gambling would be throwing the banks making money from merchant accounts a bone, a small bone.
Now my question.
Personally I think you have to be dumb as a box of rocks to gamble on a coin toss over the phone with stranger on the other end of the phone tossing the coin, but that's not my concern.
You know that people will still be able to use credit cards to get cash advances at internet gambling, they'll simply use Western Union and wire money to the casino account of their choice on the credit card of their choice. They can wire money from their bank to the casino of their choice. If they are really hardcore gamblers they can send a money order to these casinos.
Now you seemed to want to vilify PayPal because it allowed people to fund internet casino accounts. Is your issue with PayPal or is it with internet gambling? Do you feel the same outrage that Western Union, your local bank, or even a money order from the USPS can be used for such a purpose?
posted on July 9, 2002 08:09:16 AM new
Uaru: There is no bone to throw. Try reading the article. There are no banks or merchant accounts to benefit. The government and the credit card issuers are doing what they can to block this. Paypal helped the online casinos get around this even writing in their public files that it might be illegal to do so. As far for the red herrings you are dangling I ain't biting them.
posted on July 9, 2002 08:46:22 AM new
correct me if i am wrong but does paypal not get more than 50-60% of its income from non auction related activites including gambling?
if they stop the online gambling then surely the value of the company is less?
its good to see ebay starting to clean up paypals act i wonder if they will become FDIC?
posted on July 9, 2002 09:05:37 AM newmrfoxy76correct me if i am wrong but does paypal not get more than 50-60% of its income from non auction related activites including gambling?
If PayPal got over 60% of its income from eBay alone I'd say you were wrong. No link provided, I'm just going on memory.
posted on July 9, 2002 10:20:56 AM new
I remember someone posting a link as to how much of paypal income was from non-ebay related transaction and if memory serves me right, it dont always, it was pretty high......
"For the year ended December 31, 2001, our customers identified to us approximately 66.9% of our payment volume as settlements from online auction transactions, and 33.1% as non-auction related. During 2001, our percentage of auction-related payment volume decreased as we continued to diversify and our non-auction-related business grew more rapidly than did our auction-related business."
RE: "...as we continued to diversify and our non-auction related business grew more rapidly..." (i.e., more and more on-line casino's found that they could use US to illegally launder their money.)
posted on July 9, 2002 11:59:41 AM newAbout 60 percent of PayPal's business comes from eBay users.
Whitman said eBay would no longer let PayPal facilitate payments for online gambling sites. Although that represents nearly 8 percent of PayPal's revenue — and could account for up to 15 percent in 2003 — eBay executives worry about long-term legal questions surrounding Internet betting
posted on July 9, 2002 01:00:08 PM new
Depending on who you listen to payponzi's gaming business runs from 8-20%. They "claim" 60% from auctions, which is probably overstated. That leaves, if my math is right another 20% app. from what? http://www.suepaypal.org/
shows that the other 20% or more could be pornography,hate groups and drugs. The links are there. Talk about an act that has to be cleaned up!
