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PayPal freezes £80,000 earned from adult Steam game, as part of payment processor crackdown

PayPal and Steam logos are shown (Image source: PayPal, Steam with edits)
PayPal and Steam logos are shown (Image source: PayPal, Steam with edits)
A programmer for a Steam game featuring adult content is in an ongoing dispute with PayPal. The payment processor is allegedly withholding £80,000, claiming the title violates its terms of service. PayPal and credit cards have increasingly restricted marketplaces that sell mature-themed games.

Recently, payment processors have forced gaming marketplaces to delist titles with adult content. In some cases, the creators of these Steam games now find themselves in dire financial straits. One programmer is desperate for help after PayPal began withholding £80,000 of revenue.

Noticed by TheGamer, Fit-Commercial-5681 reached out to posters on the Legal Advice UK subreddit. After noticing the frozen funds, the programmer contacted PayPal. During the conversation, the payment gateway asked for a link to the Steam game in question. Once the company confirmed that the project had mature content, it refused to release the funds.

The PayPal terms of service prohibit payments for any products involving adult content. Even so, Fit-Commercial-5681 argues that the funds aren’t directly from sales of the Steam game. Instead, PayPal is being used by the developer’s corporation to reimburse the programmer. The poster also claims that the game doesn’t break UK laws and focuses on “cheating in relationships”.

PayPal dispute with adult game programmer Reddit post (Image source: screenshot, Legal Advice UK subreddit)
PayPal dispute with adult game programmer Reddit post (Image source: screenshot, Legal Advice UK subreddit)

Adding to the urgency, Fit-Commercial-5681 owes the HMRC, the UK’s tax authority, a large sum of money. Several members of the legal aid group suggest that PayPal can’t withhold the £80,000 indefinitely. Still, they recommend that the programmer seek counsel as soon as possible.

How payment processors are attacking the gaming industry

While PayPal may seem like a dubious choice, the programmer had exhausted other options. Fewer payment processors accommodate anyone associated with adult games, films, or artwork. That’s a problem Valve is facing now that Steam gamers in the majority of countries can no longer use PayPal.

Many gamers have blamed the Australian Collective Shout for influencing payment providers. The activists campaign against games that depict the abuse of women and girls. However, opponents argue that adult games are being banned on one group’s moral grounds, rather than for glorifying crimes.

Developers and publishers in the UK face an added obstacle with the new Online Safety Act. It’s aimed at protecting minors, but gamers of legal age may hesitate to share private information when making purchases.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2025 08 > PayPal freezes £80,000 earned from adult Steam game, as part of payment processor crackdown
Adam Corsetti, 2025-08-26 (Update: 2025-08-26)