There are many cases where they dont listen. One of the example is Amit_patel3001 himself. His account got banned for this and never got back.
What most of you guys fail to understand is that all this crap around Paypal has actually nothing to do with them. Every company operating in a country have to comply with the country's laws and regulations. It is not Paypal that decided not to allow gambling links but the laws of every country. As long as Paypal operates in USA and manage the money transfer of the US citizens, they will have to comply with the US laws and obviously they won't accept any gambling related transactions. In UK gambling it is allowed by law so they will comply with the UK laws when it comes to UK citizens. There is a big sports betting website that allows direct Paypal transactions for UK citizens whitout any problem (bwin.com) I have no idea about the other countries...I would suggest to check with your laws and with Paypal representatives just to make sure you are on the safe side.
MeetHere, You have a good point and there is no reason why Bidding Directories have escaped, it has purely been down to luck that PayPal hasn't looked closely at any of the transactions. The easy way to avoid this problem regardless of the directory type or software is to not send the URL as part of the transaction. This is what causes the red flags at PayPal. PayPal don't actually go to your web site and check out your service, they have the information directly in the transaction and when they see a http://come-and-bet-here.com/ in the transaction details they have all the info they need. And loredan is right on the money, PayPal in the EU is not concerned about gambling as much as the US because of the recent law changes. If PayPal in the US does not follow up on such transactions then ultimately it would be PayPal themselves that got into trouble. @Mikey... ref "I'd just get them on the phone and tell them whats what." They are the most incompetent jokers I have ever had the pleasure of dealing with. A year or so ago I had the luxury of a four hour telethon with them spanning 7 different PayPal staff and not one of them could explain how someone creating a dispute could open a USD balance on my UK account when I had never held nor accepted payments in USD. Completely screwed up all of my accounting systems and took weeks to sort out.