What's PayPal's Role In The Daily Fantasy Sports Industry?

Yahoo! Inc. YHOO is said to have informed users of its daily fantasy sports (DFS) platform that they can no longer make deposits using their credit cards. But, Yahoo said it would continue to accept DFS deposits using the Paypal Holdings Inc PYPL, according to a report on CalvinAyre. http://calvinayre.com/2016/03/31/business/yahoo-halts-credit-card-deposits-daily-fantasy-sports/ According to the report, PayPal issued its own statement saying it was also continually reviewing and considering "ongoing developments in relation to Daily Fantasy Sports, including the announcements by DraftKings and FanDuel of their temporary withdrawal from certain states and the passage of legislation and regulations in other states." But, the report said PayPal insisted it "continues to process payments for these businesses in states where they offer their services." This year, Citigroup IncC and Vantiv Inc VNTV have pulled out of the DFS payments for customers in New York state. These latest announcement puts spotlight on the role of Paypal in the daily fantasy sports (DFS) industry, where PayPal has long been the popular method to deposit and withdraw money. Industry expert Darren Heitner shared his thoughts on the topic to Benzinga: "PayPal works with many operators in the daily fantasy sports space and probably gained prominence once Vantiv pulled out. Just yesterday, PayPal stated that it will continue working with multiple DFS companies while it reviews the legal landscape. Concurrently, Yahoo announced that it will stop allowing deposits through credit cards, but will keep permitting PayPal deposits." "Meanwhile, I noted that at least one DFS company had the rug pulled out from under it by PayPal, so that could be a precursor of what is to come for the larger landscape. Too soon to tell." Answering a question on how did this company had the rug pulled out from under it, Heitner said: "Perhaps operating in states that PayPal has deemed inappropriate. But that's mere speculation."