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Re:Game Wagering with Bitcoin and USD by mw44118 on Saturday December 27, 2014 @04:57PM (#8804104)
This link suggests paypal only allows skill games for approved merchants:

https://www.paypal.com/us/webapps/helpcenter/helphub/article...

Re:Game Wagering with Bitcoin and USD by aml183 on Saturday December 27, 2014 @06:09PM (#8804327)
We went through the Paypal Approval process and were approved.