Your Video Guide to Gaming Excitement!

PayPal freezing funds from gambling transactions?

27 January 2022

PayPal customers who have used their accounts for gambling and poker are reporting that their accounts are being frozen, and in some cases their money is being seized by the payment provider.

And on the topic of money, it looks as if Las Vegas will soon be moving toward cashless gaming.

Several users have come forward with accusations that PayPal is freezing gambling accounts and keeping the funds without offering any explanation as to why. And now, they are coming together to take legal action against the payment provider in a federal lawsuit. They’re also looking for more people who have faced similar situations and thinking of a class-action lawsuit.

One of the plaintiffs, Lena Evans, has used PayPal for over 20 years to send cash back and forth for a poker league that she owns. PayPal seized nearly $27,000 in her account without giving her a reason why. She also uses that account to sell clothing on eBay and run a non-profit to help women in need.

Then there is poker player Chris Moneymaker, who had $12,000 taken from his PayPal account. He was asking others to join him in a class action lawsuit after his account was “limited” for six months and his money disappeared. But as soon as the word ‘lawsuit’ started being tossed around the company “mysteriously returned” his cash. Go figure.

To be sure, it’s not just that PayPal is freezing gambling accounts. The lawsuit filed accuses the company of unlawfully seizing personal property and violations of racketeering laws. A class-action suit would also seek restitution, punitive damages, and exemplary damages for all who have had their monies seized and accounts frozen.