The answer to this question is Yes and no. PayPal can be used for gambling in some countries, including the UK, Ireland and Portugal. However, in other countries you can’t play at Paypal casinos or use your PayPal account for online gambling. Canada is one of those countries. PayPal is not available for online poker, casino or sportsbook transactions in Canada.
This is because gaming sites in Canada are not licensed and regulated by the government. That is a requirement for PayPal to process payments. PayPal is still available for transactions related to eBay purchases and other person-to-person transfers.
You can play only at casinos that are Canadian friendly and are based outside of Canada. One has to presume that PayPal is staying out of the market because they fear those circumstances, even though there are no plans indicating this is the case, may change.