eBay said it is acquiring online payments company PayPal in a deal valued at $1.5 billion.

PayPal will continue to offer its service as an independent brand, but there are some changes ahead.

eBay Chief Financial Officer Rajiv Dutta said eBay will discontinue PayPal's online gaming business, which was expected to account for 10 percent to 15 percent of total revenue in fiscal 2003. Dutta said the move is due to the "uncertain legal situation" around online gaming.

More:
- PayPal Move Deals Latest Blow to Online Casinos (Reuters)
- EBay Says No to PayPal Gambling (Wired)
- EBay to block PayPal gambling payments (Las Vegas Sun)