What PayPal says the feature does

The PayPal Gambling Block is a wallet-level control that can block eligible payments to merchants PayPal identifies as gambling or lottery operators. PayPal says merchant information and industry classification codes are used. If a seller is not identified correctly, a transaction may not be recognised as gambling-related.

QuestionWhat to check
Is the payment eligible for the block?PayPal account and payment terms
Is the merchant identified as gambling?PayPal's merchant classification
Does the merchant accept PayPal gambling payments?PayPal approval policy and operator cashier
Is credit-card funding involved?GB credit-card gambling restrictions still apply
How long to turn the block off?PayPal publishes a three-day cooling-off period

PayPal separately says gambling sellers need approval in jurisdictions where the activity is legal. A PayPal button or logo is not proof that a particular operator is approved or offers deposits and payouts to GB customers.

FAQ

Does PayPal Gambling Block prevent every gambling payment?

No. PayPal says it relies on merchant information and classification. It should not be relied on as the only safeguard.

Does the block stop a payout arriving?

The feature is described around eligible payments. Check PayPal's current policy for the specific transaction rather than assuming it controls a payout.