PayPal has agreed to pay 10 million dollars to settle allegations that it allowed customers to engage in illegal offshore gambling via the Internet, according to an AFP report.

PayPal made the settlement of criminal charges in federal court in St. Louis, Missouri.

The 10 million dollars amounts to a forfeiture of proceeds from Internet gambling between June 2000 and November 2002. In November 2002 PayPal stopped allowing its customers to use the service for Internet gambling purchases.