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Unless we've approved the seller, account holders may not use PayPal to send or receive payments for any form of gambling activities, including but not limited to: payments for wagers, gambling debts and gambling winnings, whether conducted online, in person or through any other means of communication.

Now, PayPal Will Report, Too\n\n But if you use PayPal as a cashout option, it will consider each withdrawal as a form of income. Unlike the reporting that the sports betting organizers have to do, third-party vendors will not calculate or offset your losses.